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.

Question 8

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

When we talk of the market socialism, it is a market framework that works under the cooperative social ownership of the means of production and the profits are generated by socially owned firms which comes with the high tax level to redistribute wealth in the social settings.

Question 10

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

The realm of public goods concept comes such that they are goods which are provided by the government because in one way or the other, a market failure has occurred and with that it leads to the fact that the market has not provided them which leaves them at the hands of the government.

Question 11

d. government programs to help the disadvantaged.

The welfare system is sometimes seen as a law and a regulatory mechanism where the government comes in handy to set programs and activities that improve the lives of the people in the society. For example, the better healthcare for all would make sure that even the disadvantaged groups have healthcare.

Question 16

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

The basic economic question takes a look at what would be done in order to meet the needs of the people through what should be produced, how should it be produced and to whom should it be produced to.

Step-by-step explanation

Question 20

a. production possibilities frontier.

It is the production possibility frontier which is the line on a production possibilities curve showing the relative amounts of goods that can be produced. The production possibilities frontier shows the efficiency of production where the goods and services can be produced.

Question 23

b. a factory building where valves are made

A physical capital is the capital which can be touched and felt and can be seen. The factory building is a physical capital and it has the tangibility effect and has the value attached to it on asset level for the firm.

Question 26

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

The needs do arise every single time and it is very difficult to meet all of one's own needs which means that the market would strive to develop in meeting the extended needs and the needs that do arise in every line of activity.

Question 30

a. It recognizes property rights.

The Bill of Rights do recognize the property rights and at the same time, it does recognize the need for the individuals to be in a realm of taxation limit that do not hinder them from moving on with the activities in business.