Multiple choice questions

1. In the long history of trading a rudimentary division of labour is identifiable. This is based on:
   1.   ?    Race
   2.   ?    Nationality
   3.   ?    Ethnicity
   4.   ?    Gender
2. According to Adam Smith, which of the following led to the expansion of the division of labour:
   1.   ?    Carrying and bartering
   2.   ?    Owning and keeping
   3.   ?    Gifting
   4.   ?    None of the above
3. Autarchic means:
   1.   ?    Self-sufficient
   2.   ?    Interdependent
   3.   ?    Interdependent
   4.   ?    Troublesome
4. In economic terms, individuals today are:
   1.   ?    Radically independent
   2.   ?    Radically interdependent
   3.   ?    Isolated
   4.   ?    Self-sufficient
5. The primary mechanisms for exchange in modern society are:
   1.   ?    Barter
   2.   ?    Personal markets
   3.   ?    Impersonal markets
   4.   ?    Networks of friends
6. Markets
   1.   ?    Allocate resources
   2.   ?    Provide a means of exchange
   3.   ?    All of the above
   4.   ?    None of the above
7. Markets do not satisfy the conditions of modern price theory because:
   1.   ?    No one knows the real value of anything
   2.   ?    Markets do not clear
   3.   ?    There may be qualitative differences in the things being sold
   4.   ?    All of the above
8. For a modern market to exist:
   1.   ?    There should be no government intervention
   2.   ?    There should be no regulation
   3.   ?    There can be no transaction costs
   4.   ?    There must be laws, standards and regulations
9. Markets are:
   1.   ?    Socially constructed
   2.   ?    Neutral
   3.   ?    Free
   4.   ?    Free
10. Free markets are not:
    1.   ?    Socially constructed
    2.   ?    Free
    3.   ?    Dominated by giant corporations
    4.   ?    Advantageous
11. The demand for a commodity is elastic if:
    1.   ?    It responds to price changes
    2.   ?    It does not respond to price changes
    3.   ?    Price change is irrelevant
    4.   ?    They are like life-saving medication
12. In a modern economy demand for many commodities is inelastic because:
    1.   ?    There is massive competition
    2.   ?    The statement is false – demand is elastic
    3.   ?    There is little price competition
    4.   ?    Leading corporations play no role
13. In capitalist society needs and wants are:
    1.   ?    Manipulated
    2.   ?    Natural
    3.   ?    Fixed
    4.   ?    Determined by consumers
14. Non-price competition includes:
    1.   ?    Built-in obsolescence
    2.   ?    Brand names
    3.   ?    Styling
    4.   ?    All of the above
15. Which of the following is not satisfied by private markets:
    1.   ?    Food needs
    2.   ?    Clothing needs
    3.   ?    Entertainment needs
    4.   ?    National defence
16. Economists refer to things that cannot be provided to one person without being available to others as the:
    1.   ?    User pays problem
    2.   ?    Buyer beware
    3.   ?    Free rider problem
    4.   ?    Free loader complex
17. Public goods are normally provided by:
    1.   ?    Government
    2.   ?    Transnational corporations
    3.   ?    Non-tax revenues
    4.   ?    Entrepreneurs
18. The isolation paradox is worsened by:
    1.   ?    Globalisation
    2.   ?    Knowledge of the Other
    3.   ?    Collective action
    4.   ?    None of the above
19. Goods have positional attributes under conditions of:
    1.   ?    Plenty
    2.   ?    Scarcity
    3.   ?    Zero crowding problems
    4.   ?    Non-market intervention
20. According to Manicas, both Karl Marx and Max Weber saw the distinctive feature of capitalism as:
    1.   ?    A market
    2.   ?    Capital as the means of production
    3.   ?    The absence of a labour market
    4.   ?    The sale of labour power to those owning the means of production