MCQ Questions (Please give me the answer with very short explanation)

1. What is not true of the price system or market is:
   1. Information access to market agents about market conditions.
   2. Serve as signals to demanders and suppliers
   3. provides equal access to and bargaining power to all participants
   4. Directs resources into those parts of the market where consumer demand for goods is greatest.
   5. Likely to provide a relative more efficient system than other alternatives

2.Businesses and environmental preservation may have a strong link:

1. To Produce with the least waste for minimal costs.
2. Ensure that they serve the consumers with minimal adverse effects
3. Reduce pollution effects through new production efficiencies.
4. All of the above
5. None of the above.

3.What is possibly not true about Individualism is that:

1. Individualism is rooted in our understanding of the human mind.
2. Science tells us that genetic differences among individuals result in unique genetic combinations in most human beings
3. even identical twins are by their nature not identical very shortly after they are born
4. the differences between individuals are most likely superficial, and that could change over time to harmonize them into homogeneous societies

4.Individualism is least explained as:

a. Someone believing oneself and behaves for self-gain so that the person enriches wealth

b. Someone being different from every other person physically and emotionally

c. It's about genetically identical twins behaving differently and their behaviour and understanding of reality in making choices

d. It's that one's perceptions characterize personality, character, desires, expectations, etc.

5.Using an example of two identical twins in somewhat different environments, German Philosophers of the 19thcentury attempted to explain:

1. How Two identical twins will have many differences in their behavior due to the influence of the environment
2. Human understanding of the environment, within which they interact in their day-to-day existence, is mostly objective.
3. People will always have very subjective perceptions of everything they encounter.
4. The sequence understanding and the perception they gained were irrelevant when similar objects were given to two identical twins
6. 6.The philosophy of utilitarianism is :
   1. The opposite of individualism
   2. Developed by Adam Smith, and expanded by Jeremy Bentham in 1798
   3. Based on utility of human pursuits for self-gain
   4. is associated with democratic political systems

7. is unlikely that Utilitarianism

1. Believes to meet all the aspirations of people to maximize societal worth
2. is inherent in democratic political process
3. Is a principle of majority rule
4. Is the only guiding principal process in the US

8.Collectivism is not a philosophy that

1. Adam Smith advocated
2. Karl Marx philosophized
3. Vladimir Lenin practiced
4. Mao Zedong espoused
5. Widely not accepted across the world

9.Collectivism has at its core

1. Government should centrally decide what is good for the society
2. There should be private ownership of resources
3. That labour and capitalists should work harmoniously
4. Could best be served through a democratic system

10.Based on the reading, you could NOT say that Hayek:

1. is a strong critique of collectivism
2. argued that collectivism leads to a loss of productivity
3. most likely was an advocate of collective and centralised decision-making.
4. Collectivism leads to totalitarianism

11. Incentives in the market are important because they serve as the mechanism through which:

1. motive and opportunity are created to improve one's one situation by using one's knowledge and skills to also improve the situation of others at the same time.
2. Government officials gain better control of the economic affairs of the society.
3. Provides a method for people to ignore others in society.
4. None of the above

12. Complains are widespread about the poor quality of education provided by public schools in the US. It is argued that this situation has arisen over the decades due primarily to that:

1. It's often poor children who attend public schools, and in many instances, such children are less prepared to undergo learning
2. Public school teachers and administrators are less desirous of their duties than their private counterparts
3. State school system is absent of incentive structures that could harness the potential of individuals to deliver their best
4. Prevalence of trade unionism which influences policymakers to make decisions through campaign contributions

14. Incentives are considered fundamental to the functioning of a market economy as it explained:

1. Why suppliers produce more when prices rise
2. Why Investors enter markets in which prospective profits are high
3. Why are investors less enthusiastic TAKE high-risk sectors unless rewards are sufficiently high
4. In an economic system with state control, there is less appetite for private investment
5. All of the above.

15. The chapter on Property rights does not argue that:

1. High productivity makes rich richer and poor poorer
2. Lack of property rights could responsible for poverty
3. Presence of property rights enable more people to escape poverty and social distresses
4. The progress of societies could be enhanced by allowing people to transfer property freely

16. Property rights could be explained as:

1. Have a right over anybody's property
2. The right the government exercises over property ownership
3. The king or the government can assign right over property to anyone he likes
4. The ownership right any individual has over property to mange as the way person wishes

17.Having property rights, according to the article, will:

1. Enables Markets to function aggressively
2. Enhance capital accumulation to rich
3. Enables economic growth but with widening income gaps
4. Makes it possible for countries to attain economic prosperity
5. Was the reason for rich-poor divide

18.The property rights, enshrined in the constitution as Bill of Rights of the US, cover the ownership of the assets of

1. US subjects
2. Houses, land, and other intangible property in the US
3. Intangible property
4. Sri Lankan US subjects making an investment in Sri Lanka

19.The following are not among the incentives articulated by Gwartney and Stroup states:

1.Allowing farming ownerships to reap economic benefits as the manner that it will be useful in trading in markets

2.Leaving property with no ownership could face natural degradation and over-exploitation

3.Communities with no property rights fail to prosper

4.Community farming for the early settlers of the Plymouth Colony in the US.

20.It isargued that property rights links with economic growth but:

1.Superior outcomes of the individual access to the property over community control

2.Assurances the owners enjoy about ownership

3.The commonality and standardization of property laws applicable to every subject equally and the ease of practice.

4.Situation of forgery property transfers with impunity

21.Government regulation of business and enterprise could lead to :

1. consequences opposite of the stated reason for implementing them.
2. limiting competition and result in fewer consumer choices than on an open competitive market.
3. Making people worse off .
4. All the above.
5. None of the above.

22.What least explains about making of a pencil?

1. The manufacture of a pencil requires knowledge of pencil-making machines that cannot be operated by a single person.
2. The manufacture of a pencil requires many specialized inputs, specialized knowledge of other resources, much logistics and many more.
3. Complexicity of pencil manufacture justifies state role in doing it.
4. All of these are equally good explanations.

23.People often dump their leftovers in public places because:

1. It is easy to dispose of private garbage in public places like swamps without controversy.
2. Many believe garbage disintegrates over time, thus no moral guilt
3. Absence of incentives for such actions
4. It is the duty of the local council garbage collectors as people pay rates to the council.

24.The failure of the Roman state is a classic example that:

1. Fighting wars sacrificing economic prosperity
2. Lack of preparedness for defense and overindulgence in prosperity make a state vulnerable
3. Political corruption could destroy the productive attitudes of people
4. When people resort to welfarism they lose the attitude and commitment to produce

25.The message of the article on Regulation - political or marketstory is that :

1. It is good to regulate and use stringent regulations for strict standards
2. Markets usually are unable to ensure good workmanship due to overriding profit biases
3. It is best that the markets left, as far as possible, to their own devices as markets could provide inbuilt mechanisms to deliver quality outcomes
4. State has a role to play when markets fail, thus in this case, comprehensive regulation is a way forward.

26.Friedman argues what the government focus should be on:

1. Preserving law and order of the country so that country is attractive to investors
2. Provision of national defense and judiciary to conquer territory to strengthen the state
3. Upholding property rights and bill of rights as core principles
4. Financing fiscal deficit where necessary such that government could function uninterrupted