PRINCIPLES OF ECONOMICS 2E · CHAPTERS 1-8 · TEST BANK
Principles of Economics 2e – Chapters 1-
8 Test Bank
180+ Verified Q&A | Complete Exam Prep
TEXTBOOK CHAPTERS F O R M AT S TAT U S
Economics 2e 1-8 Q&A Verified
Comprehensive test bank study guide for Principles of Economics 2e, Chapters 1-8.
All questions and answers reproduced exactly as written.
,📋 Questions & Verified Answers
180+ Verified Questions Principles of Economics 2e · Chapters 1-8
In countries like _____________ the In which of the following countries
command economy predominates. will the national government have
the greatest influence with respect
A. China and Vietnam to the nation's economy?
B. Cuba and North Korea
C. South Africa and Kenya A. China
D. Germany and France B. Cuba
B. Cuba and North Korea C. Canada
D. Chile
B. Cuba
In a command economy, the Because of their relatively small
__________ either makes most national economies, which of the
economic decisions itself or at least following is most likely considered
strongly influences how the to be the most important factor for
decisions are made. Belgium, Korea, and Canada to take
full advantage of specialization?
A. government
B. market A. division of labor
C. firm B. international trade
D. business sector C. economies of scale
A. government D. command economy
B. international trade
,In a discussion of economics, which In a _______________________, most
of the following would exert the economic decisions about what to
most influence on an individual produce, how to produce it, and for
firm's decision to hire workers? whom to produce it are made by
buyers and sellers.
A. wage levels
B. the macroeconomy A. market-oriented economy
C. the firm's income B. macroeconomy
D. household income C. microeconomy
B. the macroeconomy D. command economy
A. market-oriented economy
Which of the following best denotes Which of the following is generally
the reason for the existence of accepted as a valid criticism of the
substantial black markets? production of useful goods and
services?
A. a market-oriented economy
B. a command economy A. government involvement
C. government laws and rules B. the black market
D. the microeconomy C. environmental pollution
B. a command economy D. economic freedom
C. environmental pollution
In the first chapter of The Wealth of If macroeconomics looks at the
Nations, Smith introduces the idea economy as a whole, it focuses on
of the __________, which means the which of the following?
way in which the work required to
produce a good or service is divided A. households
into a number of tasks that are B. business firms
performed by different workers. C. unemployed people
D. the division of labor
A. division of labor C. unemployed people
B. interconnected economy
C. task economy
D. modern economy
A. division of labor
, In the ____________, households work In the ______________, households
and receive payment from firms. receive goods and services and pay
firms for them.
A. financial investment market
B. financial capital market A. labor market
C. labor market B. financial capital market
D. savings market C. goods and services market
C. labor market D. savings market
C. goods and services market
Which of the following best Which of the following best
describes a monetary policy tool? describes a fiscal policy tool?
A. interest rates A. government spending
B. taxes B. bank lending
C. household savings C. financial capital markets
D. government spending D. household spending
A. interest rates A. government spending
The two main tools of When nations desire a healthy
macroeconomic policy include macroeconomy, they typically focus
monetary policy, and fiscal policy, on three goals, one of these being:
which involves __________ spending.
A. balanced budget
A. business B. prudent monetary policy
B. government C. low inflation
C. household D. assuring competition between firms
D. capital market C. low inflation
B. government
Principles of Economics 2e – Chapters 1-
8 Test Bank
180+ Verified Q&A | Complete Exam Prep
TEXTBOOK CHAPTERS F O R M AT S TAT U S
Economics 2e 1-8 Q&A Verified
Comprehensive test bank study guide for Principles of Economics 2e, Chapters 1-8.
All questions and answers reproduced exactly as written.
,📋 Questions & Verified Answers
180+ Verified Questions Principles of Economics 2e · Chapters 1-8
In countries like _____________ the In which of the following countries
command economy predominates. will the national government have
the greatest influence with respect
A. China and Vietnam to the nation's economy?
B. Cuba and North Korea
C. South Africa and Kenya A. China
D. Germany and France B. Cuba
B. Cuba and North Korea C. Canada
D. Chile
B. Cuba
In a command economy, the Because of their relatively small
__________ either makes most national economies, which of the
economic decisions itself or at least following is most likely considered
strongly influences how the to be the most important factor for
decisions are made. Belgium, Korea, and Canada to take
full advantage of specialization?
A. government
B. market A. division of labor
C. firm B. international trade
D. business sector C. economies of scale
A. government D. command economy
B. international trade
,In a discussion of economics, which In a _______________________, most
of the following would exert the economic decisions about what to
most influence on an individual produce, how to produce it, and for
firm's decision to hire workers? whom to produce it are made by
buyers and sellers.
A. wage levels
B. the macroeconomy A. market-oriented economy
C. the firm's income B. macroeconomy
D. household income C. microeconomy
B. the macroeconomy D. command economy
A. market-oriented economy
Which of the following best denotes Which of the following is generally
the reason for the existence of accepted as a valid criticism of the
substantial black markets? production of useful goods and
services?
A. a market-oriented economy
B. a command economy A. government involvement
C. government laws and rules B. the black market
D. the microeconomy C. environmental pollution
B. a command economy D. economic freedom
C. environmental pollution
In the first chapter of The Wealth of If macroeconomics looks at the
Nations, Smith introduces the idea economy as a whole, it focuses on
of the __________, which means the which of the following?
way in which the work required to
produce a good or service is divided A. households
into a number of tasks that are B. business firms
performed by different workers. C. unemployed people
D. the division of labor
A. division of labor C. unemployed people
B. interconnected economy
C. task economy
D. modern economy
A. division of labor
, In the ____________, households work In the ______________, households
and receive payment from firms. receive goods and services and pay
firms for them.
A. financial investment market
B. financial capital market A. labor market
C. labor market B. financial capital market
D. savings market C. goods and services market
C. labor market D. savings market
C. goods and services market
Which of the following best Which of the following best
describes a monetary policy tool? describes a fiscal policy tool?
A. interest rates A. government spending
B. taxes B. bank lending
C. household savings C. financial capital markets
D. government spending D. household spending
A. interest rates A. government spending
The two main tools of When nations desire a healthy
macroeconomic policy include macroeconomy, they typically focus
monetary policy, and fiscal policy, on three goals, one of these being:
which involves __________ spending.
A. balanced budget
A. business B. prudent monetary policy
B. government C. low inflation
C. household D. assuring competition between firms
D. capital market C. low inflation
B. government
