C06 Online Exam 3_05 SCORE 100 PERCENT

Question 1 of 20

What is the basic problem underlying the views of the social Darwinist?

A. Survival of the fittest is assumed to be survival of the best.

B. It does not take into account those less fortunate.

C. It conflicts with notions of government.

D. It is unsustainable.

Question 2 of 20

Smith’s utilitarian argument is most commonly criticized for making which of the following so-called “unrealistic” arguments?  

A. Smith assumes that no one seller can control the price of a good.

B. Smith assumes that the manufacturer will pay for all the resources used to produce a product.

C. Smith assumes that humans are motivated only by a natural, self-interested desire for profit.

D. All the above

Question 3 of 20

What did Marx object to in regards to private property?  

A. private ownership of land

B. private ownership of factories and companies

C. private ownership of houses, clothes, etc.

D. private ownership of anything

Question 4 of 20

Social Darwinists had a different take on the utilitarian justification for free markets. What did they argue?

A. They argued that only by aiding weaker businesses can they grow strong.

B. They argued that economic competition would not produce human progress.

C. They argued that economic competition was inherently flawed.

D. They argued that the best businesses are those that can survive fierce economic competition.

Question 5 of 20

What is the term for a grant that indicates ownership of a particular expression or idea?

A. intellectual property

B. trademark

C. copyright

D. infringement

Question 6 of 20

What is the definition of “absolute advantage?”

A. Production costs of making a commodity are lower for one country than another.

B. A company has a trade secret that gives it an edge in the markets.

C. A country produces many different goods, rather than specializing.

D. Opportunity costs of making a commodity are lower for one country than another.

Question 7 of 20

Ricardo looks to which rule setter to normalize trade?

A. World Trade Organization

B. World Bank

C. International Monetary Fund

D. None of the above

Question 8 of 20

What is the definition of “comparative advantage”?  

A. Production costs of making a commodity are lower for one country than another.

B. A company has a trade secret that gives it an edge in the markets.

C. A country produces many different goods, rather than specializing.

D. Opportunity costs of making a commodity are lower for one country than another.

Question 9 of 20

So-called primitive societies used economic systems based on __________.

A. small business organization

B. tradition-based societies

C. barter systems

D. none of the above

Question 10 of 20

What is the term for nonphysical property such as knowledge or information?

A. intellectual property

B. virtual property

C. information property

D. Internet property

Question 11 of 20

China and Singapore are examples of what type of economies?

A. ones that favor free markets and globalization

B. ones that favor individual property rights

C. ones that favor government intervention

D. ones that favor competition

Question 12 of 20

Under TRIPS, when do patents for new products expire?

A. after five years

B. after the company owning the patent reaches 25 years in business

C. after 20 years

D. after 50 years

Question 13 of 20

What is the definition of the economic system based primarily on government authorities making decisions?  

A. command economy

B. market economy

C. mixed economy

D. capitalist economy

Question 14 of 20

Which country’s laws regarding property and ownership rights have been influenced by John Locke’s views?

A. United States

B. Japan

C. Thailand

D. Mexico

Question 15 of 20

According to Smith, when private individuals are left free to seek their own interests in free markets, they will inevitably be led to further the public welfare by __________.

A. giving donations

B. spending more freely

C. the “invisible hand”

D. a “guiding light”

Question 16 of 20

What effects of capitalism did Karl Marx observe and detail?

A. the rise of large corporations

B. pollution of the environment

C. unethical behavior of business owners

D. worker exploitation and inequality

Question 17 of 20

Karl Marx offers the most critical view of modern private property and free market institutions. Marx claims that free-market capitalism necessarily produces __________.

A. extremes of inefficiency

B. extremes of efficiency

C. extremes of equality

D. extremes of inequality

Question 18 of 20

According to Locke, the power of government should be __________.

A. expanded to meet the needs of all citizens

B. expanded to meet the needs of corporations

C. limited, extending only far enough to protect basic rights of all citizens

D. limited, extending only far enough to protect the basic rights of corporations

Question 19 of 20

What is the most important concept in international trade theory?

A. free trade

B. absolute advantage

C. comparative advantage

D. means of production

Question 20 of 20

Which of the following is true of decisions made in a system primarily based on markets?

A. Private companies make the main decisions about what they will produce and who will get it.

B. Land and factories are owned and managed by private individuals.

C. People are motivated to work primarily by the desire to get paid for voluntarily supplying the things others are willing to pay for.

D. All of the above