Question 1	Multiple Choice	Average Score 0.1 points
	(Last Word) According to economist Donald Boudreaux, the world's tens of billions of individual resources get arranged productively:
	Answers Percent Answered because government has become highly effective at central planning. 0% because private property encourages people to consider the alternative uses of their resources and select those that provide the most rewards. correct100% because people tend to be creative and orderly. 0% through random trial and error. 0% Unanswered 0%

Question 2	Multiple Choice	Average Score 0.04 points
	(Last Word) The main point of the "Petition of the Candlemakers" is that:
	Answers Percent Answered a nation must export in order to import. 11.1% trading nations face rising, not constant, opportunity costs. 38.9% rationales for trade barriers are often absurd. correct 44.4% industrial policies are doomed to fail. 5.6% Unanswered 0%

Question 3	Multiple Choice	Average Score 0.08 points
	(Last Word) Over the past twenty-five years, China has averaged annual growth rates of nearly:
	Answers Percent Answered 5 percent. 0% 9 percent. correct 77.8% 12 percent. 11.1% 15 percent. 11.1% Unanswered 0%

Question 4	Multiple Choice	Average Score 0.05 points
	(Last Word) Critics of the World Trade Organization (WTO) say that liberalized world trade does all of the following except:
	Answers Percent Answered produce environmental degradation. 33.3% allow producers to circumvent labor protections such as workplace safety, child labor restrictions, and collective bargaining rights. 5.6% helps developing nations escape from poverty. correct 50% promote the interests of multinational corporations. 11.1% Unanswered 0%

Question 5	Multiple Choice	Average Score 0.05 points
	(Last Word) Which of the following groups is most likely to support the World Trade Organization (WTO)?
	Answers Percent Answered anarchists. 5.6% extreme environmentalists. 0% labor union leaders in industrially advanced countries. 44.4% economists. correct 50% Unanswered 0%

Question 6	Multiple Choice	Average Score 0.09 points
	Which of the following is a distinguishing feature of a command system?
	Answers Percent Answered private ownership of all capital. 5.6% central planning. correct 88.9% heavy reliance on markets. 5.6% wide-spread dispersion of economic power. 0% Unanswered 0%

Question 7	Multiple Choice	Average Score 0.08 points
	Which of the following is a distinguishing feature of a market system?
	Answers Percent Answered public ownership of all capital. 0% central planning. 5.6% wide-spread private ownership of capital. correct 77.8% a circular flow of goods, resources, and money. 16.7% Unanswered 0%

Question 8	Multiple Choice	Average Score 0.1 points
	Examples of command economies are:
	Answers Percent Answered The United States and Japan. 0% Sweden and Norway. 0% Mexico and Brazil. 0% Cuba and North Korea. correct 100% Unanswered 0%

Question 9	Multiple Choice	Average Score 0.08 points
	Of the following countries, the one that best exhibits the characteristics of a market economy is:
	Answers Percent Answered Canada. correct 77.8% Cuba. 0% North Korea. 0% China. 22.2% Unanswered 0%

Question 10	Multiple Choice	Average Score 0.08 points
	Economic systems differ according to what two main characteristics?
	Answers Percent Answered Who owns the factors of production, and the methods used to coordinate economic activity. correct 77.8% The technology used in production, and the quantity and quality of natural resources. 0% How goods are produced, and who gets them. 16.7% The political system in place, and the degree of scarcity facing the economy. 5.6% Unanswered 0%

Question 11	Multiple Choice	Average Score 0.09 points
	Copyrights and trademarks are examples of:
	Answers Percent Answered capital goods. 5.6% human capital. 0% property rights. correct 94.4% public goods. 0% Unanswered 0%

Question 12	Multiple Choice	Average Score 0.07 points
	The regulatory mechanism of the market system is:
	Answers Percent Answered self-interest. 16.7% private property. 11.1% competition. correct 66.7% specialization. 5.6% Unanswered 0%

Question 13	Multiple Choice	Average Score 0.09 points
	Well-defined property rights:
	Answers Percent Answered discourage investment and growth. 0% discourage hard work. 5.6% impede exchange. 5.6% encourage owners to maintain or improve their property. correct 88.9% Unanswered 0%

Question 14	Multiple Choice	Average Score 0.07 points
	Economic profits and losses:
	Answers Percent Answered are both considered by economists to be a part of production costs. 16.7% are essential to the reallocation of resources from less desired goods to more desired goods. correct 72.2% have no influence on the composition of the domestic output. 5.6% equalize the distribution of income in the long run. 5.6% Unanswered 0%

Question 15	Multiple Choice	Average Score 0.08 points
	Which of the following best describes the invisible-hand concept?
	Answers Percent Answered The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest. correct 77.8% The nonsubstitutability of resources creates a conflict between private and public interests and calls for government intervention. 5.6% The market system is the best system for overcoming the scarce resources-unlimited wants problem. 16.7% Central direction by the government will improve resource allocation in a capitalistic economy. 0% Unanswered 0%

Question 16	Multiple Choice	Average Score 0.08 points
	The invisible-hand concept suggests that:
	Answers Percent Answered changes in product demands are only randomly reflected in changes in the demands for resources. 5.6% profit maximization is inconsistent with an efficient allocation of resources. 0% government action is necessary to correct for market failures. 16.7% when firms maximize their profits, society's output will also be maximized. correct 77.8% Unanswered 0%

Question 17	Multiple Choice	Average Score 0.08 points
	"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfill the output quantities specified in the central plan caused a chain-reaction of adverse repercussions on production." This quotation best identifies the:
	Answers Percent Answered incentive problem under central planning. 5.6% self-sufficiency dilemma under communism. 11.1% resource overcommitment problem under communism. 0% coordination problem under central planning. correct 83.3% Unanswered 0%

Question 18	Multiple Choice	Average Score 0.08 points
	Shortages and unmet demand provide opportunities for individuals and firms to profit under capitalism, but they present no such opportunities under central planning. This reality represents central planning's:
	Answers Percent Answered incentive problem. correct 83.3% coordination problem. 5.6% paradox of value. 5.6% X-efficiency problem. 5.6% Unanswered 0%

Question 19	Multiple Choice	Average Score 0.09 points
	The failure of Soviet central planning was reflected in:
	Answers Percent Answered a declining growth rate. 5.6% poor quality goods. 0% the failure to provide promised consumer goods. 0% all of these. correct 94.4% Unanswered 0%

Question 20	Multiple Choice	Average Score 0.05 points
	If products were in short or surplus supply in the Soviet Union:
	Answers Percent Answered price and profit signals eliminated those shortages and surpluses. 11.1% price and profit signals intensified those shortages and surpluses. 22.2% producers would not react because no price or profit signals occurred. correct50% the planners would immediately adjust production to achieve equilibrium. 16.7% Unanswered 0%