Question : 111) In mixed economies, economic behaviour A) largely determined by : 1384125

111) In mixed economies, economic behaviour is

A) largely determined by a central authority.

B) based primarily on custom and habit.

C) directed only by self interest.

D) affected by elements of tradition, government command, and market incentives.

E) random and unpredictable.

112) In traditional economies, economic behaviour is

A) largely determined by a central authority.

B) based primarily on custom and habit.

C) directed only by self interest.

D) affected by elements of tradition, government command, and market incentives.

E) random and unpredictable.

113) Complex economic plans for many economic sectors are most associated with a

A) free-market system.

B) mixed market system.

C) command economy.

D) feudal system.

E) traditional economy.

114) Most modern economies in the world today

A) have pure market exchange.

B) are similar to feudal systems.

C) are mostly run by government decree.

D) have a mix of traditional, command and market elements.

E) are complex systems that defy description and analysis.

115) In the current Canadian economy, the majority of choices on how resources are allocated are made by

A) consumers and firms through the price system.

B) the various levels of government.

C) negotiation between unions and firms.

D) business firms only.

E) legal contracts.

116) Comparison of economic systems indicates that

A) most nations have either a purely socialist economy or a purely capitalist economy.

B) most countries have mixed economies.

C) socialist economies are clearly superior in producing consumer goods.

D) capitalist economies are clearly superior in distributing income.

E) all countries have largely traditional economies.

117) Many economies in central and Eastern Europe, including the countries of the former Soviet Union, are still in the process of moving from a command economy to a market economy. In the first years of this transition, most of these countries experienced sharp drops in output and reductions in living standards. Economists generally see this as

A) the failure of the market system.

B) the triumph of capitalism over communism.

C) an indication of the extreme difficulty of transition from one type of economic system to another.

D) an indication that these economies should return to being command economies.

E) the difficulty of corruption in non-market economies.

118) In a pure market economy, the role of government is limited to provision of :

i) a basic legal and institutional structure.

ii) intervention in the allocation of resources in some areas of the economy.

iii) redistribution of income.

iv) stabilization of economic conditions generally.

Which of the above points is true?

A) Only i).

B) Only i) and ii).

C) Only i) and iv).

D) Only i), ii), and iv).

E) All of the points are provided by government in a pure market economy.

119) Income redistribution in a mixed economy

A) is supported by all individuals.

B) rarely occurs.

C) is only accomplished through government intervention.

D) risks reducing individual incentives to work and produce.

E) is not allowed.

120) In a modern mixed economy the government ensures that key institutions are in place to facilitate voluntary transactions between economic agents.  These key institutions are

A) labour and capital markets.

B) the House of Commons and the Senate.

C) the Department of Finance and the Bank of Canada.

D) securities regulators and the court system.

E) private property and freedom of contract.