2024 Exam Success with the [Principles of Macroeconomics,OpenStax ] Test Bank

Chapter 1 Test Bank



Multiple Choice Questions



1. In countries like _____________ the command economy predominates.



A. China and Vietnam

B. Cuba and North Korea

C. South Africa and Kenya

D. Germany and France



Answer: B Reference:



Explanation:



Type: Multiple Choice Difficulty: Medium Category: Remember




2. In which of the following countries will the national government have the greatest
influence with respect to the nation's economy?



A. China

B. Cuba

C. Canada

D. Chile



Answer: B Reference:

,Explanation:



Type: Multiple Choice Difficulty: Medium Category: Analyze




3. In a command economy, the __________ either makes most economic decisions
itself or at least strongly influences how the decisions are made.



A. government

B. market

C. firm

D. business sector



Answer: A Reference:



Explanation:



Type: Multiple Choice Difficulty: Easy Category: Understand




4. Because of their relatively small national economies, which of the following is most
likely considered to be the most important factor for Belgium, Korea, and Canada to
take full advantage of specialization?



A. division of labour

B. international trade

C. economies of scale

,D. command economy



Answer: B Reference:



Explanation:



Type: Multiple Choice Difficulty: Medium Category: Analyze




5. In a discussion of economics, which of the following would exert the most
influence on an individual firm's decision to hire workers?



A. wage levels

B. the macroeconomy

C. the firm's income

D. household income



Answer: B Reference:



Explanation:



Type: Multiple Choice Difficulty: Easy Category: Analyze




6. In a _______________________, most economic decisions about what to produce, how
to produce it, and for whom to produce it are made by buyers and sellers.



A. market-oriented economy

B. macroeconomy

, C. microeconomy

D. command economy



Answer: A Reference:



Explanation:



Type: Multiple Choice Difficulty: Easy Category: Remember




7. Which of the following best denotes the reason for the existence of substantial
black markets?



A. a market-oriented economy

B. a command economy

C. government laws and rules

D. the microeconomy



Answer: B Reference:



Explanation:



Type: Multiple Choice Difficulty: Easy Category: Remember




8. Which of the following is generally accepted as a valid criticism of the production
of useful goods and services?



A. government involvement