Elevate Your Study Game with the [Principles of Microeconomics 2,OpenStax] 2024 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