PREP 1109 Quiz_5 Questions and Answers 100% Solved correctly

59) It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish, because failure to do this could ________ the efficiency of the system by producing some goods and services that are ________. A) increase; valued more than others B) reduce; not as highly valued as others C) increase; not as highly valued as others D) reduce; valued more than others 59) Answer: B Diff: 3 Page Ref: 11/11 Topic: Efficiency Learning Outcome: Micro 1: Identify the basic principles of economics and explain how to think like an economist AACSB: Analytic Skills 60) How does a market system prevent people from getting as many goods and services as they wish? A) The government imposes taxes on those who earn beyond a certain amount of income. B) Governments interfere with the market mechanism to influence the allocation of goods and services. C) In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish. D) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. 60) Answer: D Diff: 2 Page Ref: 10/10 Topic: Market Economies Learning Outcome: Micro 1: Identify the basic principles of economics and explain how to think like an economist AACSB: Reflective Thinking 61) In a market economy, those who are willing and able to buy what is produced A) solely determine what is produced. B) receives what the government allows them to receive. C) receive no more than everyone else in the market. D) receive the most of what is produced. 61) Answer: D Diff: 1 Page Ref: 10/10 Topic: Market Economies Learning Outcome: Micro 1: Identify the basic principles of economics and explain how to think like an economist AACSB: Reflective Thinking 62) How are the fundamental economic decisions determined in Cuba? A) The government decides because Cuba is a centrally planned economy. B) Individuals, firms, and the government interact in a market to make these economic decisions. C) The United Nations decides because Cuba is a developing economy. D) These decisions are made by the countryʹs elders who have had much experience in answering these questions.