Question : 41) The Farm Factory, a booth at the local Farmer’s : 1388090

41) The Farm Factory, a booth at the local Farmer’s Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a gallon of milk?

A) 1 2/3 dozen eggs

B) 3/5 of a dozen eggs

C) $2.50

D) $1.50

42) The decision about what goods and services will be produced made in a market economy is made by

A) lawmakers in the government voting on what will be produced.

B) workers deciding to produce only what the boss says must be produced.

C) producers deciding what society wants most.

D) consumers and firms choosing which goods and services to buy or produce.

E) consumers dictating to firms what they need most.

43) The decision about what goods and services will be produced made in a centrally-planned economy is made by

A) lawmakers in the government deciding on what will be produced.

B) workers deciding to produce only what the boss says must be produced.

C) producers deciding what society wants most.

D) consumers and firms choosing which goods and services to buy or produce.

E) consumers dictating to firms what they need most.

44) How are the fundamental economic decisions determined in Canada?

A) Individuals, firms, and the government interact in a market to make these economic decisions.

B) These decisions are made by the country’s elders who have had much experience in answering these questions.

C) The government decides because Canada is a centrally planned economy.

D) The United Nations decides because Canada is a developing economy.

45) Which of the following contributed to the downfall of the Soviet Union in 1991?

A) government dissatisfaction with high living standards and political freedom

B) an inability to produce low-cost consumer goods that households wanted

C) an overabundance of high-quality goods and services

D) the lack of a strong dictator who can coordinate economic activities

Article Summary

In an August 2013 speech from the Lincoln Memorial, President Obama was expected to emphasize that increased economic equality is needed to improve racial equality. Economic gaps based on race have endured for 50 years, with the differences in unemployment rates between blacks and whites remaining virtually unchanged and the gap in wealth actually increasing. “If you look at 50 years after the 1960s civil rights movement, the most stubborn and persistent challenge when it comes to the nation’s racial challenge remains in the areas of economics and wealth,” said Marc Morial, president of the National Urban League.

Source: Zachary A. Goldfarb, “For Obama, 50 years after historic march, economic equality the path to racial justice,” Washington Post, August 17, 2013.

46) Refer to the Article Summary. The article mentions increased economic equality is needed in terms of wealth. How would a more equal distribution of wealth differ from a more equitable distribution of wealth?

A) They both mean the same thing, which is a more even distribution of wealth.

B) A more equal distribution of wealth is a more fair distribution, and a more equitable distribution of wealth is a more even distribution.

C) A more equal distribution of wealth is a more even distribution, and a more equitable distribution of wealth is a more fair distribution.

D) They both mean the same thing, which is a more fair distribution of wealth.

47) The government makes all economic decisions in a centrally planned economy.

48) When voluntary exchange takes place, only one party gains from the exchange.

49) A college must decide if it wants to offer more evening and weekend classes. This decision involves answering the economic question of “for whom to produce.”

50) In a centrally planned economy, the government decides how economic resources will be allocated.

51) Consumers and make all economic decisions in a mixed economy.

52) When voluntary exchange takes place, neither party usually gains from the exchange.

53) A university must decide if it should stop offering foreign language classes. This decision involves answering the economic question of “how to produce.”

54) In market economies, income distribution is always going to be completely equitable.