Test Bank For Microeconomics Campbell McConnell 21st Edition
Chapter 02 The Market System and the Circular Flow Answer Key
Multiple Choice Questions
1. Which of the following is a distinguishing feature of a command system?
A. private ownership of all capital
B. central planning
C. heavy reliance on markets
D. widespread dispersion of economic power
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 03 Hard
Learning Objective: 02-01 Differentiate between laissez-faire capitalism, the command system, and the market system.
Test Bank: I
Topic: Economic Systems
2. Which of the following is a distinguishing feature of laissez-faire capitalism?
A. public ownership of all capital
B. central planning
C. minimal government intervention
D. a circular flow of goods, resources, and money
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 03 Hard
Learning Objective: 02-01 Differentiate between laissez-faire capitalism, the command system, and the market system.
Test Bank: I
Topic: Economic Systems
3. Examples of command economies are
A. the United States and Japan.
B. Sweden and Norway.
C. Mexico and Brazil.
D. Cuba and North Korea.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 03 Hard
Learning Objective: 02-01 Differentiate between laissez-faire capitalism, the command system, and the market system.
Test Bank: I
Topic: Economic Systems
4. Of the following countries, which one best exhibits the characteristics of a market economy?
A. Canada
B. Cuba
C. North Korea
D. Belarus
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 03 Hard
Learning Objective: 02-01 Differentiate between laissez-faire capitalism, the command system, and the market system.
Test Bank: I
Topic: Economic Systems
5. The French term “laissez-faire” means
A. “there is no free lunch.”
B. “let it be.”
C. “circular flow.”
D. “public ownership.”
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 03 Hard
Learning Objective: 02-01 Differentiate between laissez-faire capitalism, the command system, and the market system.
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