Reference no: EM133134453
1. What is a calculation of the total productivity of a country's economy?
A.gross domestic product
B.net worth
C.open market value
D.standard of living
2. Verizon has hired lobbyists to try to persuade lawmakers to lower legal regulation over the cellular service industry. Why do they engage in this practice?
A. Some regulations are costly to implement and cut into profits.
B. Many regulations promote too much competition, driving down prices.
C. Regulations are Communism
D. Certain regulations result in rapid business growth, which some companies find difficult to handle.
3. An externality is
A. an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
B. the total cost to society of producing an additional unit of a good or service.
C. a situation in which the market, on its own, does not distribute resources efficiently.
D. the amount a consumer pays to consume an additional amount of any particular good.
4. What is a person called who benefits from a good or services but does not pay for it?
A. a private consumer
B. a volunteer user
C. a free rider
D. an entrepreneur
5. A train station has been built behind your house. The noise of the trains annoys you and is a/an:
A. free-rider problem.
B. externality problem.
C. public sector problem.
D. public good problem.
6. How should governments operate in a free market economy?
A. They should control business activities.
B. They should require companies to get government approval for every business decision.
C. They should allow individuals to operate their businesses in ways they think will maximize their profits and to only intervene when necessary to prevent market failure.
D. They should decide what companies will be formed and then allow the managers to run them.
7. Which is a group that tries to influence the government to help its members?
A. interest group
B. public policy group
C. market research group
D. free enterprise group
8. Why does the US Federal Government offer patents and copyrights?
A. to regulate the business cycle
B. to promote innovation and invention
C. to encourage free trade
D. to strengthen American culture
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