Question : 38) All of the following critical functions of the government : 1387349

 

38) All of the following are critical functions of the government in facilitating the operation of a market economy except

A) protecting private property.

B) enforcing property rights.

C) ensuring an equal distribution of income to all citizens.

D) enforcing contracts.

 

 

39) The term “property rights” refers to

A) the physical possession of a house or any other property which the owner legally purchased.

B) the ability to exercise control over one’s own resources within the confines of the law.

C) the government’s right to appropriate land from wealthy land owners to redistribute to peasants.

D) the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud.

 

 

40) The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.

A) centrally planned economies

B) government-run health care

C) nationalizing oil companies

D) patents and copyrights

 

41) A major factor contributing to the slow growth rate of less developed economies is

A) the lack of well-defined and enforceable property rights.

B) the lack of natural resources.

C) the lack of workers.

D) the high rate of illiteracy.

 

 

42) A successful market economy requires

A) a government-controlled banking system and government price controls.

B) well-defined property rights and an independent court system to adjudicate disputes based on the law.

C) generous unemployment benefits and paid medical leave for everyone in the labor force.

D) an equitable distribution of income and limits on immigration.

 

 

43) Consider the following items:

a.the novel The DaVinci Code by Dan Brown

b.the “The Spirited Shipper,” an innovative wine shipping box

c.a Swiss chef’s award-winning recipe

d.an original fabric design, for example, the fabric used for “Coach” bags and luggage

 

Which of the items listed is an example of intellectual property?

A) a and b only

B) a, b, and c

C) a and d only

D) all of the items listed

 

44) Consider the following items:

a.the album “21” by Adele

b.a Dutch horticulturalist’s new method for cultivating hybrid tulips

c.Rolls Royce’s “Spirit of Ecstasy” hood ornament design

d.the sale of Tumi luggage at a Macy’s department store.

 

Which of the items listed is an example of intellectual property?

A) a and b only

B) a, b, and c

C) a and d only

D) all of the items listed

 

 

45) An organization of producers that limits the amount of a good produced is known as a

A) free market organization.

B) guild.

C) collective.

D) co-op.

 

 

46) In 18th century Europe, governments gave guilds legal authority to limit production of goods. Did this authority obstruct or improve the market mechanism and how?

A) It improved the market mechanism by making it more efficient because the guilds were able to quickly identify and rectify any market shortages and surpluses.

B) It improved the market mechanism because the government’s actions provided the correct set of signals to the market so that producers can adjust their output to better meet the needs of consumers.

C) It obstructed the market mechanism because the guild’s actions prevented the forces of demand and supply from coordinating the self-interested decisions of producers and consumers.

D) It obstructed the market mechanism because with one more party having to coordinate activities (the guilds) there were delays in getting the products to consumers.

 

47) Stricter laws and regulations to protect intellectual property rights

A) will help to create a more successful market system.

B) will only benefit those companies whose intellectual property rights have in the past been ignored.

C) will tend to have little impact on an economy since intellectual property is not tangible.

D) will create a stronger and more successful black market for intellectual property.