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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 4, Cradle to Grave.

Multiple Choice Questions

1. The command elements of every economy include things like:
(a) military conscription
(b) court orders
(c) prices
(d) forbidding the purchase and sales of heroin

2. Which of the following is not a public assistance program?
(a) food stamps
(b) Aid to Families with Dependent Children
(c) Medicaid
(d) Earned Income Credit

3. Free trade takes place when:
(a) when consumers want a good
(b) when producers want to see a good
(c) all parties feel they can benefit
(d) when one party can benefit

4. Free markets lead to:
(a) economic tyrrany
(b) bankruptcy
(c) greater individual freedom
(d) less individual freedom

5. The term human capital refers to the:
(a) output produced by a fasting
(b) personal productive capacity of an individual
(c) kinds of inputs the worker uses
(d) machinery in the factory

Short Answer Questions

1. The distribution of income is determined by all but the following:

2. Government interferes with the price system by:

3. The price system functions in such a way that each individual acting in his own best interests, makes everyone better off. This concept is known as the:

4. Some people support tariffs because they think that tariffs:

5. A market failure occurs when:

(see the answer key)

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