Professional Documents
Culture Documents
Topic
Question numbers
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1-14
15-18
19-24
25-49
50-57
58-72
73-74
75-76
77-87
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Specialization
Type: D Topic: 2 E: 63 MI: 63 MA: 63
15. The division of labor means that:
A) labor markets are geographically segmented.
B) unskilled workers outnumber skilled workers.
Answer: C
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P r o d u c tio n te c h n iq u e s :
II
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3
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IV
5
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55. Refer to the above information. Which technique is economically most efficient in producing A?
D) IV
64. The dollar votes of consumers ultimately determine the composition of output and the allocation of
resources in a market economy. This statement best describes the concept of:
B) consumer sovereignty
65. Assume the demand for product Y increases and the market system responds by producing more Y. This
illustrates:
D) the directing or guiding function of prices.
66. Which of the following best describes the guiding function of competitive prices?
C) The market system can negotiate reallocations of resources that are appropriate to changes in consumer
tastes, technology, and resource supplies.
67. Which of the following best describes the invisible-hand concept?
A) The desires of resource suppliers and producers to further their own self-interest will automatically
further the public interest.
68. The invisible hand refers to the:
poor.
B) notion that, under competition, decisions motivated by self-interest promote the social interest.
69. The invisible-hand concept suggests that:
D) assuming competition, private and public interests will coincide.
True/False Questions
Type: A E: 62 MI: 62 MA: 62
77. Market economies use capital goods because they improve productive efficiency.
Answer: True