8. What is market socialism?

a. a system with a free market and very high taxes to redistribute wealth

b. a system in which government makes all economic decisions

c. a system in which the government is authoritarian in nature

d. a system in which the government owns all factors of production

10. Which of the following is a characteristic of a public good?

a. The private sector could provide it more efficiently.

b. Its benefits are greater for government than for society.

c. It is shared by the public but is provided by the government.

d. Taxpayers demand that the government provide it.

11. The welfare system is a. a network of private charities. b. the self-correcting tendency of a free market. c. the government's effort to preserve economic stability. d. government programs to help the disadvantaged.

16. Which of the following is a summary of the basic economic questions?

a. How much land, labor, and capital are available?

b. What goods, services, and products will the government mandate?

c. What taxes, rules, and regulations should government enact?

d. What goods and services should be produced, how, and for whom?

20. The line on a production possibilities curve showing the relative amounts of goods that can be produced is the

a. production possibilities frontier.

b. opportunity cost line.

c. gross domestic product.

d. net domestic product.

23. Which of the following is physical capital?

a. a college degree in accounting

b. a factory building where valves are made

c. learning to write computer programs

d. training to be an electrician

26. Why do markets develop?

a. The government dictates what can be bought and sold.

b. Firms decide to pool resources instead of competing.

c. It is difficult to meet all of one's own needs.

d. People need to provide the market with goods.

30. In what way does the Bill of Rights protect individuals' freedom to engage in business activities?

a. It recognizes property rights.

b. It denies the government the ability to regulate commerce.

c. It provides free contracts.

d. It provides each industry with a competitive edge.