Question

QUESTION 18

To say that a price is "too low for equilibrium" means that:

	A.	producers are making substantial profits
	B.	consumers want to pay a lower price than sellers are currently charging.
	C.	there will occur a surplus of the product.
	D.	the amount demanded exceeds the amount supplied.

QUESTION 19

A point on a demand curve indicates:

	A.	a particular price and the corresponding quantity demanded by consumers.
	B.	a combination of two consumer goods which buyers will choose at given prices.
	C.	a situation where the buying and selling decisions of consumers and producers are consistent.
	D.	the ratio of the selling price to the buying price.

QUESTION 21

An economic system can be best characterized as:

	A.	a complete set of plans on how goods and services should be produced.
	B.	guidelines for determining wages, prices, and interest payments.
	C.	the set of principles a nation adopts in answering the central economic problem of scarcity and the related questions What? How? and For Whom?
	D.	a set of rules for determining the relationship between groups.

QUESTION 25

Which of the following is NOT a characteristic of pure capitalism?

	A.	a limited role for government
	B.	private ownership of property
	C.	concern for the welfare of your fellow man
	D.	freedom of enterprise
	E.	many buyers and sellers in competitive markets

QUESTION 28

The economic system that was most prominent in Europe when Adam Smith wrote his famous book The Wealth of Nations was:

	A.	mercantilism
	B.	capitalism
	C.	mixed capitalism
	D.	socialism

QUESTION 29

The principles of communism were popularized by:

	A.	Groucho Marx
	B.	Karl Marx
	C.	George Meany
	D.	Charles Fourier and Robert Owens.

QUESTION 30

The most important difference among economic systems is:

	A.	the choice between using the market mechanism or government planning.
	B.	whether a liberal or conservative party is in power.
	C.	the degree to which institutions within the nation are democratic.
	D.	how interest rates are determined.

QUESTION 31

Two series of economic data which are directly related will graph as an upsloping line on a graph.

True

False

QUESTION 32

Graphs are important in the social sciences because they contain more information than the data upon which they are based.

True

False

Answer 1

18. D- The amount demand exceeds the amount supplied.

19. A, a point on the demand curve indicates a particular price and corresponding quantity demanded by consumers. The demand curve shows the relationship between the price and the quantity demanded of a particular commodity.

21. An economic system can be best characterized as the set of principles a nation adopts in answering the central economic problem of scarcity and the related questions What? How? and For Whom?.

An economic system should deals with the questions of How to produce?, What to produce and for whom to produce. These are the most important decisions.

25. E- Many buyers and sellers in the competitive market. - It is a feature of perfect competition.

28. A- Mercantalism- Mercantalism is an economic policy prevailed in between 1500 to 1770's , it is used to maximize the trade of nation, especially in the case of gold and silver.

29. B, Karl Marx, through his work Communist Manifesto.

30. A, the most important difference among economic system is the choice between using the market mechanism or government planning.

In a market the forces of supply and demand determine economy and there is only nominal role of the government.

31. TRUE- if the one variable moves in one direction and the other varibale moves in the same direction, so the graph will be an upward sloping curve.

31- TRUE- on a graph we can find the nature of the data very easily and also the optimal amount.