Question 1: Based on scientific nutritional studies in most countries, income of $1 a day does not provide sufficient food, shelter and clothing to live. Under these conditions the medical risk of death is high. This statement is:
- a normative statement.
- a subjective statement.
- an art-of-economics statement.
- an objective statement.
Question 2: In 1996, the Internet allowed companies such as Amazon to sell goods online without regard to geographic location. This is known as:
- distribution
- e-commerce
- world trade
- industrial revolution
Question 3: To engage in economic reasoning, you must compare:
- total cost and total benefit.
- marginal cost, sunk cost, and total benefit.
- sunk cost and marginal cost.
- marginal cost and marginal benefit.
Question 4: Waste produced by a power plant that harms local fishing industries is an example of a(n):
- demerit good.
- private good.
- limited liability.
- externality.
Question 5: In recent years, many phone banks for telemarketing and customer service have moved from the U.S. to foreign nations such as the Philippines and India. This move is usually called:
- insourcing.
- outsourcing.
- technological change.
- unfair trade.
Question 6: In a feudalist society, in comparison with mercantilism:
- merchants play a more important political role than serfs.
- tradition plays a more important role than the government.
- government plays a large role in determining the what, how and for whom decisions.
- markets make the central economic decisions.
Question 7: The Soviet socialist economy fell apart primarily because:
- it was based on barter rather than monetary exchange.
- individuals are not motivated by self interest.
- workers lacked incentives to work and production was inefficient.
- markets failed to develop.
Question 8: Microsoft has just taken some Senators out to dinner in Paris in a private jet. This is likely an example of an attempt to influence:
- economic forces.
- political forces.
- social forces.
- the price mechanism.
Question 9: Governments do all of the following except:
- oversee the interaction of households and businesses in the goods and factor markets.
- demand labor services from households in the factor market.
- demand goods and services from businesses in the goods market.
- supply labor services to businesses in the factor market.