Microeconomics Question Paper
Microeconomics 12e, Ragan - Ch 1
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) A modern economy like Canada's is largely organized by
1)
A) governments at all levels coordinating the activities of firms and citizens.
B) benevolent individuals pursuing the public interest.
C) the directions of international economic consortiums.
D) individuals forming cooperative enterprises and labour unions.
E) individuals following their own self interest, doing what seems best for themselves.
2) An insight first fully developed by Adam Smith is that
2)
A) benevolence in society is unimportant.
B) individual self-interest is the only necessary force for social order.
C) self-interest undermines effective economic order.
D) self-interest, not benevolence, is the foundation of economic order.
E) without benevolence production would not occur.
3) Karl Marx argued that
3)
A) benevolence, not self-interest, produced an effective economic order.
B) centrally planned economies could provide a more equitable distribution of total output than capitalist economies.
C) the unfettered market system driven by self-interest leads to the best social outcome.
D) technological change was not important in improving living standards.
E) a free-market system would produce a low level of total output.
4) In the Canadian economy, most decisions regarding resource allocation are made by
A) the various levels of government.
B) business firms only.
C) consumers and producers interacting in the price system.
D) legal contract.
E) negotiation between unions and firms.
1
4)
5) A basic underlying point in economics is that
5)
A) people have unlimited wants in the face of limited resources.
B) governments should never interfere in the workings of a market economy.
C) governments should satisfy the needs of the people.
D) people have limited wants in the face of limited resources.
E) there are
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) A modern economy like Canada's is largely organized by
1)
A) governments at all levels coordinating the activities of firms and citizens.
B) benevolent individuals pursuing the public interest.
C) the directions of international economic consortiums.
D) individuals forming cooperative enterprises and labour unions.
E) individuals following their own self interest, doing what seems best for themselves.
2) An insight first fully developed by Adam Smith is that
2)
A) benevolence in society is unimportant.
B) individual self-interest is the only necessary force for social order.
C) self-interest undermines effective economic order.
D) self-interest, not benevolence, is the foundation of economic order.
E) without benevolence production would not occur.
3) Karl Marx argued that
3)
A) benevolence, not self-interest, produced an effective economic order.
B) centrally planned economies could provide a more equitable distribution of total output than capitalist economies.
C) the unfettered market system driven by self-interest leads to the best social outcome.
D) technological change was not important in improving living standards.
E) a free-market system would produce a low level of total output.
4) In the Canadian economy, most decisions regarding resource allocation are made by
A) the various levels of government.
B) business firms only.
C) consumers and producers interacting in the price system.
D) legal contract.
E) negotiation between unions and firms.
1
4)
5) A basic underlying point in economics is that
5)
A) people have unlimited wants in the face of limited resources.
B) governments should never interfere in the workings of a market economy.
C) governments should satisfy the needs of the people.
D) people have limited wants in the face of limited resources.
E) there are