Basic Microeconomics

By: Grace Carticiano

This individual trade goods or services for money and then use this money to buy the goods or services
that they wish to acquire.

d. Monetary economy

It refers to the ability to organize production and bear risks.

b. Entrepreneurial ability

Goods that are used to produce other goods or services are called economic growth and are also known
as inputs or factors of production.

False

The category of "land" includes all natural resources wherein these natural resources include the land
itself, as well as any minerals, oil deposits, timber, or water that exists on or below the ground.

True

These are markets that demand for a product includes both domestic and foreign demand.

c. International markets

This is the rate at which the currency of one country is converted into the currency of another country.

b. Exchange rate

Individuals are assumed to select the alternative(s) that they believe will make them happiest, given the
information that they possess at the time of the decision.

True

Economic good is if the quantity of the good demanded exceeds the quantity supplied at a zero price.

True

This is the inverse relationship exists between the price of a good and the quantity demanded in a given
time period.

d. Law of demand

This is the production of a good if the individual can produce the good at the lowest opportunity cost.
b. Comparative advantage

Stocks, bonds, and other financial assets are examples of capital/ resources.

False

Self-interested people may donate their time to charitable organizations, give gifts to loved ones,
contribute to charities and engage in other similarly altruistic activities.

True

This is the production of a good if the individual can produce more than the other individuals.

b. Absolute advantage.

The category of "land" includes all natural resources wherein these natural resources include the land
itself, as well as any minerals, oil deposits, timber, or water that exists on or below the ground.

True

Goods that are used to produce other goods or services are called economic growth and are also known
as inputs or factors of production.

False

They argued that similar benefits accrue from international specialization and trade.

d. Adam Smith and David Ricardo

This is a market system in which goods or services are traded directly for other goods or services.

d. Barter system

This studied human activities involved with "wealth-getting" which could be unnatural as well as natural.

b. Chrematistiks

He began his Republic with an economic interpretation of history wherein he begins by seeking the
meaning of justice.

b. Plato

This may be used as a tool to aid in the decision making process.

c. Microeconomics

It evaluates the current state of our world and to speculate on ways that it might be improved; it is an
important aspect of our education.
d. Economics

This was an analysis of how decisions were made regarding the management of resources.

b. Oikonomiks

He was the successor to Walras at the University of Lausanne whose name has been associated with the
basic criteria used as a measure of efficiency.

a. Pareto

This was defined by Sidgwick as the system that fixes as the reasonable ultimate end of each individual's
action his own greatest happiness.

a. Egoistic Hedonism

He is largely responsible for the simplification of Bentham's utilitarian philosophy as is has come to be
used as a foundation for mainstream microeconomics.

a. Jevons

They are often regarded as the first important contributors to Western culture.

b. Greeks

He draws an analogy between the Principles of Maximum Energy and the Principles of Greatest
Happiness.

c. Francis Ysidro Edgeworth

This approach encourages the focus to be on individual behavior and the optimization of the welfare of
the individual.

a. Utilitarian approach

He developed an analysis of the moral system (The Theory of Moral Sentiments), then an economic
system (The Wealth of Nations).

c. Adam Smith

His influence on the development of microeconomics is through the work of Leon Walras.

c. Cournot

He is an English philosopher who laid the foundation for British Utilitarian microeconomics in his
Introduction to the Principles of Morals and Legislation.

a. Jeremy Bentham
He is the famous seventeenth century scientist and mathematician, allegedly became intrigued one day
when he saw an apple fall from an apple tree.

d. Isaac Newton

_______ was defined by Sidgwick as the system that fixes as the reasonable ultimate end of each
individual's action his own greatest happiness.

a. Egoistic Hedonism

This diagram offers a simple way of organizing all the economic transactions that occur between
households and firms in the economy.

d. Circular-flow diagram

Households and firms interact in two types of markets. In the markets for goods and services, _______
are buyers and _______ are sellers.

b. Households, firms

This _______ demand for a product includes both domestic and foreign demand.

b. International markets

_______ is an English philosopher, laid the foundation for British Utilitarian microeconomics in his
Introduction to the Principles of Morals and Legislation.

c. Jeremy Bentham

It evaluates the current state of our world and to speculate on ways that it might be improved; it is an
important aspect of our education.

a. Economics

_______ is if the quantity of the good demanded exceeds the quantity supplied at a zero price.

a. Economic good

This is the inverse relationship exists between the price of a good and the quantity demanded in a given
time period, ceteris paribus.

b. Law of demand

_______ influence on the development of microeconomics is through the work of Leon Walras.

b. Cournot

This is defined as the additional cost associated with a one-unit increase in the level of the activity.
c. Marginal cost

Economists say that these goods are the increase in the price of one result in a reduction in the demand
for the other.

d. Complementary goods

_______ produce goods and services using inputs, such as labor, land, and capital (buildings and
machines).

b. Firms

_______ people may donate their time to charitable organizations, give gifts to loved ones, contribute to
charities and engage in other similarly altruistic activities.

c. Self-interested

According to him, if private parties can bargain without cost over the allocation of resources, then the
private market will always solve the problem of externalities and allocate resources efficiently.

b. Coase

This is when making choices wherein this means that individuals are assumed to select the alternative(s)
that they believe will make them happiest, given the information that they possess at the time of the
decision.

d. Rational self-interest

_______ was an analysis of how decisions were made regarding the management of resources.

c. Oikonomiks

An _______ is said to be efficient if the economy is getting all it can from the scarce resources it has
available.

a. Outcome

In these markets, households provide firms the inputs that the firms use to _______ and _______.

d. Produce goods and services

Another of the Ten Principles of Economics is that the cost of something is what you give up to get it,
one good as measured in terms of the other good.

d. Opportunity cost

_______ and _______ argued that similar benefits accrue from international specialization and trade.

d. Adam Smith and David Ricardo

_______ was the successor to Walras at the University of Lausanne whose name has been associated
with the basic criteria used as a measure of efficiency.

d. Pareto

_______ developed an analysis of the moral system called The Theory of Moral Sentiments, then an
economic system called The Wealth of Nations.

c. Adam Smith

_______ began his Republic with an economic interpretation of history wherein he begins by seeking
the meaning of justice.

d. Plato

Stocks, bonds, and other financial assets are examples of _______.

a. Capital/ resources

_______ refers to the ability to organize production and bear risks.

c. Entrepreneurial ability

They own the factors of production and consume all the goods and services that the firms produce.

c. Households

This implies the existence of tradeoffs wherein these tradeoffs can be illustrated quite nicely by a
production possibilities frontier.

d. Scarcity

This _______ may be used as a tool to aid in the decision making process.

d. Microeconomics

_______ draws an analogy between the Principles of Maximum Energy and the Principles of Greatest
Happiness.

b. Francis Ysidro Edgeworth

The _______ are often regarded as the first important contributors to Western culture.

b. Greeks

The theory of consumer choice examines the tradeoffs that people face in their role as _______.

b. Consumers
They produce goods and services using inputs, such as labor, land, and capital (buildings and machines).

c. Firms

This is a measurement of how expensive a good is in terms of units of some other good or service.

b. Relative price

This _______ approach encourages the focus to be on individual behavior and the optimization of the
welfare of the individual.

c. Utilitarian

_______ is the best known of the early contributors to French rationalist microeconomics wherein he
perceives the quantity demanded as a continuous function of the price.

b. Augustin Cournot

The purpose of which is to keep the price of a good above the market equilibrium price.

c. Price floor

This a graph that shows the various combinations of outputthat the economy can possibly produce given
the available factors of production and the available production technology those firms can use to turn
these factors into output.

a. Production possibilities frontier

Goods that are used to produce other goods or services are called _______ and are also known as inputs
or factors of production.

a. Economics Resources

_______ was an analysis of how decisions were made regarding the management of resources.

d. Oikonomiks

Economists say that these goods are the increase in the price of one result in a reduction in the demand
for the other.

d. Complementary goods

This is defined as the additional cost associated with a one-unit increase in the level of the activity.

b. Marginal cost

_______ influence on the development of microeconomics is through the work of Leon Walras.

a. Cournot
Households and firms interact in two types of markets. In the markets for goods and services, _______
are buyers and _______ are sellers.

c. Households, firms

This is the relationship that exists between the price of a good and the quantity supplied in a given time
period.

a. Supply

These are taken into account that includes the demand for a product both domestic and foreign
demand.

a. International markets

_______ also use models to learn about the world, but instead of being made of plastic, they are most
often composed of diagrams and equations.

b. Economists

The category of _______ includes all natural resources and these natural resources include the land
itself, as well as any minerals, oil deposits, timber, or water that exists on or below the ground.

c. Land

_______ is a market system in which goods or services are traded directly for other goods or services.

b. Barter system

_______ is the production of a good if the individual can produce the good at the lowest opportunity
cost.

c. Comparative advantage

This _______ is individual that trade goods or services for money and then use this money to buy the
goods or services that they wish to acquire.

a. Monetary economy

_______ is largely responsible for the simplification of Bentham's utilitarian philosophy as is has come to
be used as a foundation for mainstream microeconomics.

b. Jevons

_______ is a studied human activities involved with "wealth-getting" which could be unnatural as well as
natural.

a. Chrematistiks
This diagram represents the flows of goods and services between households and firms.

a. Circular-flow diagram

2. This is when capital equipment is given only part of the theory of value which treats
of the short period.

3. Select one:
4. a. Physical stock
5. b. Interest
6. c. Capital
7. d. Neo-classical
8. It determines supply price consist of wages and profits.

9. Select one:
10. a. Productiveness of capital
11. b. Capitalist
12. c. Costs of production
13. d. Interest

14. Question 2
15. Correct
16. Mark 1.00 out of 1.00

17. Flag question

18. Question text

19. This is characterize when a unit of labor that was expended at a certain time in the
past is more valuable today than a unit expended today, because its fruits are already
ripe.

20. Select one:

21. a. Productiveness of capital
22. b. Interest
23. c. Capitalist
24. d. Costs of production
 25. They are the one who buys a machine readymade pays a price for it which includes
profit to the capitalist who sells it.

26. Select one:

27. a. Productiveness of capital
28. b. Capitalist
29. c. Interest
30. d. Costs of production
31. This kind of economist thinks of a position of equilibrium as a position towards
which an economy is tending to move as time goes by.

Select one:
a. Neo-classical
b. Physical stock
c. Capital
d. Interest
This is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce, and
so contribute to maintaining the level of profits.

a. Neo-classical
b. Interest
c. Capital
d. Physical stock

They span that there were evidently a spade and a spindle already in existence.

Select one:
a. Adam delved and Eve
b. Unit of labor
c. Investment
d. Saving
This is a process of accumulation consists in refraining from consuming current output.
Select one:
a. Cost of capital
b. Equilibrium
c. Stock of wealth
d. Blast furnaces

Question 10
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This is positive because profits are positive though at the same time the cost and difficulty
of obtaining finance play a part in keeping productive equipment scarce, and so contribute
to maintaining the level of profits.

Select one:
a. Neo-classical
b. Interest
c. Capital
d. Physical stock

In China, transactions in enterprise control rights began in 1984 in such cities as Baoding
and Wuhan.

Select one:

True

False

Question 2
Correct

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Question text
Yin Zhaoliang succinctly defines corporate control as the power exercised over the company
with varying degrees of influence by shareholders or those with related benefits.

Select one:

True

False

Question 3
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Decision management includes the decision's initial proposal and its implementation after
authorization while decision control includes the examination and approval of the proposed
decision and supervision of its implementation.

Select one:

True

False

Question 4
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U.S. Federal Securities Act provides control which means the power to exercise a controlling
influence over a company's operational management or general and specific policies or the
activity of a natural person directly or indirectly whether by voting a contract or other
means.

Select one:

True

False

Question 5
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Internal control mechanisms of corporate governance are mainly reflected in the market for
corporate control and especially in contention for control rights.

Select one:

True

False

Question 6
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Professor Michael Jensen of the U.S. Corporate Governance Authority and the Wharton
School stated that the American enterprise system has been transformed from
"management capitalism" with de facto management control to "investor capitalism" where
the investor exercise effective constraints on managers.
Select one:

True

False

Question 7
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Partnerships are the result of the extension of proprietorial enterprises wherein if
proprietors establish a partnership by means of a contract they become partners.

Select one:

True

False

Question 8
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Mechanisms of restraint in corporate control can be examined with regard to internal and
external mechanisms. Internal control mechanisms are also known as the company's internal
governance structure.

Select one:

True
 False

Liu Xiaoxuan considered that claim to residue refers to residual rights of control with the
implication that those with claims regarding the ownership of residue are the contractual
controllers in respect of actions concerning the assets and have the final decision and also
that they bear operational profits and losses independently.

Select one:

True

False

Question 10
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Commercial rights of control are the power to make decisions regarding the distribution of
the residue produced under the contract.

Select one:

True

False

The separation of ownership and control refers to the phenomenon of the almost total lack
of control rights or lack of direct control rights over company management policy by
shareholders in publicly held corporations.

Select one:

True

False

Question 2
Correct

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In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduce agency costs.

Select one:

True

False

Question 3
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India's Company Law provides that companies can take two forms, namely limited liability
companies or joint stock limited companies.

Select one:

True

False

Question 4
Correct

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The City of London Regulations of the United Kingdom define control rights as the
ownership or joint ownership of 30% or more of the voting shares in a company whether or
not the amount owned constitutes the actual voting rights.

Select one:

True

False

Question 5
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The theory of the market for corporate control was first put forward by Professor Henry G.
See of the Washington University Law School in 1965.

Select one:

True

False

His idea of maximizing utility of the maximum number of people typically involves one
maximum too many to be feasible.

Select one:

a. Vilfredo Pareto

b. Pigou
c. Jeremy Bentham

d. Manuel d'Economie Politique

Question 2
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Pareto expressed it in the second edition when he proposed that welfare increases if some
people gain and nobody loses.

Select one:

a. Pigou

b. Jeremy Bentham

c. Vilfredo Pareto

d. Manuel d'Economie Politique

Question 3
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He suggested that a perfect market economy and a perfectly planned market economy
were equivalent.

Select one:

a. Clarke-Groves Mechanism
b. Enrico Barone

c. Partial equilibrium

d. Samuelson Rule

Question 4
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They are the one who founded the modern utilitarian framework in Economics.

Select one:

a. Jules Dupuit and Heinrich Gossen

b. Adam Smith

c. Richard Cantillon

d. Leon Walras

Question 5
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He introduced the full-fledged general equilibrium system based on the fundamental
principles of utility maximization and profit maximization.
Select one:
a. Leon Walras

b. Richard Cantillon

c. Jules Dupuit and Heinrich Gossen

d. Adam Smith

Question 6
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He took the distributional issue quite a bit further when he made two key contributions to
existing theory.

Select one:

a. Vilfredo Pareto

b. Jeremy Bentham

c. Manuel d'Economie Politique

d. Pigou

They called these taxes the welfare optimizing or improving taxes under externalities.

Select one:

a. Partial equilibrium

b. Pigovian taxes

c. Abba P. Lerner

d. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare Economics

Question 9
Correct

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This version was first introduced by Dupuit (1844), in which he studied the value of a large
project.

Select one:

a. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare Economics

b. Abba P. Lerner

c. Partial equilibrium

d. Pigovian taxes

This result has tried to modify the axioms to resolve the conflict between individual and
social orderings but no fully satisfactory solution has been found.

Select one:

a. Abba P. Lerner

b. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare Economics

c. Partial equilibrium

d. Pigovian taxes

Question 2
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Question text
He discussed how a judicious government can increase welfare wherein the full-fledged
version of the modern welfare theory was fleshed out in The Economics of Welfare.
Select one:

a. Pigou

b. Vilfredo Pareto

c. Jeremy Bentham

d. Manuel d'Economie Politique

Question 3
Correct

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This is a first best policy rule for public provision wherein it presupposes that the
government or social planner can collect revenue by using lump-sum taxes.

Select one:

a. Enrico Barone

b. Partial equilibrium

c. Samuelson Rule

d. Clarke-Groves Mechanism

This mechanism is a system of side-payments which introduced to the individual alongside

the willingness to pay.

Select one:
a. Clarke-Groves Mechanism
b. Enrico Barone
c. Samuelson Rule
d. Partial equilibrium

He created the invisible hand idea that is one of the most fundamental equilibrating
relations in Economic Theory.

Select one:
a. Jeremy Bentham
b. Adam Smith
c. Leon Walras
d. Richard Cantillon
He paints a vivid picture of the demerits of the welfare state in this relation.

Select one:

a. Walter Korpi

b. Neoliberal arguments

c. Welfare dependency

d. David Marsland

Question 2
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This welfare consists of means and needs tested benefits, which are administered at the
local levels.

Select one:

a. Social security
b. Bismarkia

c. Johnny Munkhammar

d. Marginal welfare

This country is now portrayed as being a welfare state in disarray and voices both domestic
and international have argued that its own model is more and more part of the problem
rather than the solution.

Select one:

a. Sweden

b. Swedish welfare model

c. Gosta Esping-Andersen

d. Social services

Question 6
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This is for the most part not a universal system proper connected to citizens' rights, but
rather best described as wage-labor based which to some extent even workfare rather than
welfare wherein it is not tax financed but financed through compulsory payments on the
wage to a nationally administered social security system.

Select one:

a. Bismarkia

b. Johnny Munkhammar

c. Marginal welfare
d. Social security

He is the Swedish economist with a book European Dawn - After the Social Model which
summarizes the neoliberal case against the Swedish model very succinctly.

Select one:

a. Bismarkia

b. Johnny Munkhammar

c. Social security

d. Marginal welfare

Question 9
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He has been given ample room in the columns to put forward the case wherein he argues
that income social security is an ever-increasing burden on the welfare state.

Select one:

a. Neoliberal arguments

b. Stefan Folster and Fredrik Bergstrom

c. Dagens Nyheter

d. Anders Isaksson

He argued that backward nations in the OECD were rather catching up with Sweden than
Sweden lagging behind.

Select one:

a. Neoliberal arguments
b. David Marsland

c. Walter Korpi

d. Welfare dependency

Question 2
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He wrote a famous typology of welfare regimes under capitalism.

Select one:

a. Sweden

b. Social services

c. Swedish welfare model

d. Gosta Esping-Andersen

Question 3
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They summarize their results that the intersection between the official lie and the private
truth has created unstable welfare systems.

Select one:
a. Dagens Nyheter

b. Stefan Folster and Fredrik Bergstrom

c. Neoliberal arguments

d. Anders Isaksson

Question 4
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This model has for some time attracted attention worldwide wherein in the golden era of
welfare capitalism, it was hailed left and right for its unique combination of a capitalist
ownership structure and a social market.

Select one:

a. Social services

b. Sweden

c. Swedish welfare model

d. Gosta Esping-Andersen

Question 5
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This is the leading Swedish daily journal that has consistently in its editorial pages
campaigned for social security reforms.

Select one:

a. Dagens Nyheter

b. Anders Isaksson

c. Stefan Folster and Fredrik Bergstrom

d. Neoliberal arguments

He has been given ample room in the columns to put forward the case wherein he argues
that income social security is an ever-increasing burden on the welfare state.

Select one:
a. Stefan Folster and Fredrik Bergstrom
b. Anders Isaksson
c. Neoliberal arguments
d. Dagens Nyheter
This is one of the parts of the Swedish welfare state, which most resembles the image of a
general welfare state.

Select one:
a. Sweden
b. Gosta Esping-Andersen
c. Swedish welfare model
d. Social services
These arguments gained ground from 1980 and onwards in Swedish public debate wherein
this has been conducted in a setting of some irony and with a portion of outright
dishonesty.

Select one:
a. David Marsland
b. Walter Korpi
c. Welfare dependency
d. Neoliberal arguments
This kind of cost must be constructed before they can be used wherein part of the cost of
capital is interest over the period of time between the moment when work was done in
constructing capital goods and the time when they are producing a stream of output.

Select one:
a. Equilibrium
b. Stock of wealth
c. Cost of capital
This is a quantity which can be translated from one number to another by changing the unit.

Select one:

a. Blast furnaces

b. Equilibrium

c. Cost of capital

d. Stock of wealth

Question 9
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This is a characteristic by which goods are specified and that they have value that is
purchasing power over each other wherein the list of goods is quite specific with so many
actual particular objects.

Select one:

a. Equilibrium

b. Stock of wealth

c. Blast furnaces
d. Cost of capital

This can never be expended in a pure form.

Select one:
a. Saving
b. Investment
c. Unit of labor
d. Adam delved and Eve
This is making current products available for the workers to consume in the meantime.

Select one:
a. Investment
b. Saving
c. Adam delved and Eve
d. Unit of labor
He was the first to describe the system as a whole and to show that a competitive market
economy generates a Pareto optimal allocation of resources.

Select one:
a. Abba P. Lerner
b. Partial equilibrium
c. Pigovian taxes
d. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare Economics
He sees the invisible hand as embodied in a central planner, guiding the economy to a
social optimum.

Select one:
a. Leon Walras
b. Richard Cantillon
c. Adam Smith
d. Jules Dupuit and Heinrich Gossen
In recent years, this is the most fundamental and loud-voiced criticism of the Swedish model
pertains to its function.

Select one:
a. Welfare dependency
b. Neoliberal arguments
c. David Marsland
d. Walter Korpi

Sweden has this kind of social security system where payments are compulsory.

Select one:
a. Social security (wrong)
b. Johnny Munkhammar
c. Marginal welfare (wrong)
d. Bismarkia
The theory of the market for corporate control was first put forward by Professor _______ of
the Washington University Law School in 1965.

Select one:
a. Henry G. Manne
b. Mechanisms
c. Decision management
d. Separation of ownership and control
_______ transactions in enterprise control rights began in 1984 in such cities as Baoding and
Wuhan.

Select one:

a. Prosperous capitalist

b. Yang Xiaowei

c. Residual rights of control

d. China

Question 4
Correct

Mark 1.00 out of 1.00

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_______ is a type of reasoning that is amenable in principle to a multiplicity of player types
such as own-gain maximizes and those preferring equality.

Select one:

a. Amartya Sen

b. Rational-choice game

c. Evolutionary-type reasoning

d. Vienna Colloquium

The _______ theory came about in the latter half of the 19th century explicitly in the form of
Leon Walras' 1874 work "Elements of Pure Economics" and subsequently with the addition
of graphical representation in his 1892 paper "Geometrical Theory of the Determination of
Prices".

Select one:

a. Walras and Pareto

b. Pareto

c. Godel's proof

d. General equilibrium

Question 7
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_______ is the boundary of the analyticity of arithmetic which was not airtight and for the
Colloquium's work on general equilibrium theory wherein Carnap's invocation of ever richer
arithmetical languages was problematic and would prove to be prophetic at least with
regard to general equilibrium theory.

Select one:

a. Walras and Pareto

b. Godel's proof

c. Pareto

d. General equilibrium

Question 8
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_______ and _______ started from observed disequilibrium and through a process of
adjustments, they approached general equilibrium.

Select one:

a. Pareto

b. Godel's proof

c. General equilibrium

d. Walras and Pareto

_______ is the power to make decisions regarding the distribution of the residue produced
under a contract.

Select one:
a. Residual rights of control

b. Prosperous capitalist

c. China

d. Yang Xiaowei

Question 11
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The theory of value treats the short period, in which the _______ of capital equipment is given
and it has many applications.

Select one:

a. Physical stock

b. Neo-classical

c. Equilibrium

d. Capital

Question 12
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Godel's proof is the boundary of the analyticity of arithmetic which was not airtight and for
the Colloquium's work on general equilibrium theory wherein Carnap's invocation of ever
richer arithmetical languages was problematic and would prove to be prophetic at least with
regard to ________.

Select one:

a. Bergson/Samuelson

b. New welfare economics

c. General equilibrium theory

d. Economic theory

Question 13
Correct

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The _______ economist thinks of a position of equilibrium as a position towards which an
economy is tending to move as time goes by.

Select one:

a. Physical stock

b. Capital

c. Neo-classical

d. Equilibrium

_______ is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce and so
contribute to maintaining the level of profits.

Select one:
a. Capitalist

b. Costs of production

c. Interest

d. Profit

Question 16
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In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduce _______.

Select one:

a. Agency costs

b. Michael Useem

c. External control mechanisms

d. China

Question 17
Correct

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The characteristic by which goods are specified and that they have value that is purchasing
power over each other wherein the list of goods is quite specific with so many actual
particular objects is called ________.

Select one:

a. Cost of capital

b. Blast furnaces

c. Stock of wealth

d. Adam and Eve

Question 18
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The process of accumulation consists in refraining from consuming current output in order
to add to the ________.

Select one:

a. Cost of capital

b. Blast furnaces

c. Adam and Eve

d. Stock of wealth

Question 19
Correct

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_______ theory carried with it key foundational problems surrounding the very concept of
rationality in a game-theoretic setting.

Select one:

a. Evolutionary-type reasoning

b. Vienna Colloquium

c. Rational-choice game

d. Amartya Sen

Professor _______ of the U.S. Corporate Governance Authority and the Wharton School
stated that the American enterprise system has been transformed from "management
capitalism" with de facto management control to "investor capitalism" where the investor
exercise effective constraints on managers.

Select one:

a. Michael Useem

b. China

c. External control mechanisms

d. Agency costs

Question 22
Correct

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Question text
_______ includes the cost of capital goods, and since they must be constructed before they
can be used, part of which is interest over the period of time between the moment when
work was done in constructing capital goods and the time when they are producing a
stream of output.

Select one:

a. Adam and Eve

b. Cost of capital

c. Blast furnaces

d. Stock of wealth

_______ consists, in essence, in employing labor now in a way which will yield its fruits in the
future.

Select one:

a. Saving

b. Productiveness of capital

c. Stock of capital

d. Investment

Question 25
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It comes to employ a particular methodological outlook where theory was understood to
correspond with truth and was prior to the dissembling world of praxis called _______.

Select one:
a. General equilibrium theory

b. Bergson/Samuelson

c. Economic theory

d. New welfare economics

_______ is the result of the extension of proprietorial enterprises wherein if proprietors

establish a partnership by means of a contract they become partners.

Select one:

a. U.S. Federal Securities Act

b. City of London Regulations

c. Zhu Yikun

d. Partnerships

Question 28
Correct

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_______ of corporate governance is mainly reflected in the market for corporate control and
especially in contention for control rights.

Select one:

a. Michael Useem

b. Agency costs

c. External control mechanisms

d. China
_______ pioneered the use of utilitarian calculus to obtain judgments about the social interest
by aggregating the personal interests of different individuals in the form of their respective
utilities.

Select one:

a. Kenneth Arrow

b. Utilitarian welfare economics

c. Keynes

d. Bentham

Question 31
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_______ is a pioneer and advocate of social choice theory and he attacked the notion of the
abstract individual subject displaying a rarefied form of social behavior integral to the
history of economic theory as too simplistic.

Select one:

a. Evolutionary-type reasoning

b. Rational-choice game

c. Vienna Colloquium

d. Amartya Sen

Question 32
Correct

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_______ of restraint in corporate control can be examined with regard to internal and external
mechanisms.

Select one:

a. Separation of ownership and control

b. Henry G. Manne

c. Mechanisms

d. Decision management

Question 33
Correct

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_______ economies are those where the rate of profit is falling in spite of rapid technical
progress and miserable ones are those where the rate of profit is high in spite of technical
stagnation.

Select one:

a. Residual rights of control

b. Prosperous capitalist

c. Yang Xiaowei

d. China
Question 34
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_______ succinctly defines corporate control as the power exercised over the company with
varying degrees of influence by shareholders or those with related benefits.

Select one:

a. Zhu Yikun

b. U.S. Federal Securities Act

c. Partnerships

d. City of London Regulations

Question 35
Correct

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_______ is characterize by a unit of labor that was expended at a certain time in the past is
more valuable today than a unit expended today, because its fruits are already ripe.

Select one:

a. Saving

b. Investment

c. Stock of capital
d. Productiveness of capital

The _______ and _______ refers to the phenomenon of the almost total lack of control rights
or lack of direct control rights over company management policy by shareholders in publicly
held corporations.

Select one:

a. Decision management

b. Henry G. Manne

c. Mechanisms

d. Separation of ownership and control

Question 39
Correct

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_______ held that the utilities of different commodities were not independent with some
commodities functioning as substitutes or complements for each other or the consumption
of a commodity affecting the utility of another commodity in some fashion.

Select one:

a. Walras and Pareto

b. Godel's proof

c. General equilibrium

d. Pareto

Question 40
Correct

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 Flag question

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_______ was substantially criticized if not undermined by the argument that interpersonal
comparisons of utility had no scientific basis.

Select one:

a. Kenneth Arrow

b. Bentham

c. Utilitarian welfare economics

d. Keynes

_______ includes the decision's initial proposal and its implementation after authorization
while decision control includes the examination and approval of the proposed decision and
supervision of its implementation.

Select one:

a. Mechanisms

b. Henry G. Manne

c. Separation of ownership and control

d. Decision management

Question 43
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_______ is the specific list of all the goods in existence at any moment including work-in-
progressing the pipe lines of production.

Select one:

a. Investment

b. Saving

c. Stock of capital

d. Productiveness of capital

_______ considered that claim to residue refers to residual rights of control with the
implication that those with claims regarding the ownership of residue are the contractual
controllers in respect of actions concerning the assets and have the final decision and also
that they bear operational profits and losses independently.

Select one:
a. China
b. Residual rights of control
c. Yang Xiaowei
d. Prosperous capitalist
When _______ and _______ span there were evidently a spade and a spindle already in
existence.

Select one:

a. Cost of capital

b. Stock of wealth

c. Blast furnaces

d. Adam and Eve

Question 48
Correct

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 Flag question

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_______ provides control which means that the power to exercise a controlling influence over
a company's operational management and specific policies or the activity of a natural
person directly or indirectly whether by voting, through one or more intermediaries such as
a contract or other means.

Select one:

a. Partnerships

b. U.S. Federal Securities Act

c. Zhu Yikun

d. City of London Regulations

The _______ of a capitalist who has the machine built in his own workshops will expect to
receive, from sales of the final output which includes profit on the interest on the cost of
having the machine built reckoned over the period of construction.

Select one:
a. Profit
b. Costs of production
c. Capitalist
d. Interest
The _______ of the United Kingdom define control rights as the ownership or joint ownership
of 30% or more of the voting shares in a company whether or not the amount owned
constitutes the actual voting rights.

Select one:
a. City of London Regulations
b. U.S. Federal Securities Act
c. Zhu Yikun
d. Partnerships
A _______ buys a machine readymade pays a price for it which includes profit to the capitalist
who sells it.

Select one:
a. Capitalist
b. Costs of production
c. Interest
d. Profit
_______ continued to work on the possibility of the existence, stability, and uniqueness of
general equilibrium theory in increasingly complex formal mathematical models.

Select one:
a. Vienna Colloquium
b. Amartya Sen
c. Evolutionary-type reasoning
d. Rational-choice game
_______ had diagnosed the Great Depression of the 1930s as a failure of aggregate demand.

Select one:
a. Bentham
b. Keynes
c. Utilitarian welfare economics
d. Kenneth Arrow
There is a quantity which can be translated from one number to another by changing the
unit and this is called ________.

Select one:
a. Equilibrium
b. Physical stock
c. Capital
d. Neo-classical
_______ Company Law provides that companies can take two forms, namely limited liability
companies or joint stock limited companies.

Select one:
a. China
b. Agency costs
c. External control mechanisms
d. Michael Useem
_______ considers social welfare function, which although still problematic along positivist
grounds, provided a framework for ranking different social states on the basis of a
configuration or profile of individual preferences.
Select one:
a. General equilibrium theory
b. Bergson/Samuelson
c. Economic theory
d. New welfare economics
_______ used only one basic criterion of social improvement called the Pareto comparison.

Select one:
a. Economic theory
b. New welfare economics
c. General equilibrium theory
d. Bergson/Samuelson
_______ is making current products available for the workers to consume in the meantime.

Select one:
a. Productiveness of capital
b. Investment
c. Saving
d. Stock of capital
_______ is an un-invested finance for a sum of money and the net receipts of a business are
sums of money.

Select one:
a. Equilibrium (worng)
b. Physical stock (NS)
c. Capital
d. Neo-classical
The _______ determine supply price consist of wages and profits.

Select one:
a. Interest (wrong)
b. Costs of production
c. Profit
d. Capitalist (NS)
_______ analyzed the process by which a social welfare function might be formulated,
arguing that a social welfare function is only a valid concept if it is derived from the
preferences of the individuals composing the society.

Select one:
a. Utilitarian welfare economics (WRONG)
b. Kenneth Arrow (NS)
c. Bentham
d. Keynes
Anoutcome is said to be efficient if the economy is getting all it can from the scarce
resources it has available.

Select one:
True
False
Welfare independency remains a problem for those individuals who are forced by meager
economic circumstances to form their livelihood on receiving welfare.

Select one:
True
False
Keynes had diagnosed the Great Depression of the 1930s as a failure of aggregate demand.

Select one:
True
False
Stock of capital as the specific list of all the goods in existence at any moment including
work-in-progressing the pipe lines of production.

Select one:

True

False
Question 5
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Jevons is largely responsible for the simplification of Bentham's utilitarian philosophy and it
had come to be used as a foundation for mainstream microeconomics.

Select one:

True

False

Opportunity cost is one of the Ten Principles of Economics wherein the cost of something is
what you give up to get it such that one good as measured in terms of the other good.

Select one:

True

False

Question 8
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________ is a positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce and so
contribute to maintaining the level of profits.

Select one:
a. Interest

b. Grossmann and Hart

c. Neo-classical economist

d. Clarke-Groves mechanism

Regional cost defined as the additional cost associated with a one-unit increase in the level
of the activity.

Select one:
True
False

There is a quantity which can be translated from one number to another by changing the
unit and this is calledequilibrium.

Select one:
True
False
Mechanisms of restraint in corporate control can be examined with regard to internal and
external mechanisms wherein internal control mechanisms are also known as the company's
internal governance structure.

Select one:

True

False

Question 13
Incorrect

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This local market demand for a product includes both domestic and foreign demand.

Select one:
True
False
The theory of the market for corporate control was first put forward by ProfessorDavid
Macherof the Washington University Law School in 1965.

Select one:
True
False
________ is a system of side payments that was introduced to the individual alongside the
willingness to pay.

Select one:

a. Clarke-Groves mechanism

b. Grossmann and Hart

c. Neo-classical economist

d. Interest

Question 17
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Rectangular-flow diagram represents the flows of goods and services between households
and firms.

Select one:

True

False

The theory of the market for corporate control was first put forward by ________ of the
Washington University Law School in 1965.

Select one:
a. Michael Jensen

b. Henry G. Manne

c. External control mechanisms

d. Berle and Means

Question 19
Correct

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Socrates began his Republic with an economic interpretation of history where he begins by
seeking the meaning of justice.

Select one:

True

False

Question 20
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U.K. Federal provides control which means the power to exercise a controlling influence over
a company's operational management or general and specific policies or the activity of a
natural person directly or indirectly whether by voting, through one or more intermediaries,
a contract or other means.

Select one:
 True

False

Prosperous capitalist economies are those where the rate of profit is falling in spite of rapid
technical progress and miserable ones are those where the rate of profit is high in spite of
technical stagnation.

Select one:

True

False

Question 22
Correct

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Economics is the study of how individuals and societies use limited ________ to satisfy
unlimited wants.

Select one:

a. Additional cost

b. Next-best

c. Private truth

d. Resources

Question 23
Correct

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 Flag question

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Informal social networks are face-to-face relationships between a limited number of ________
who know each other and are bound together by kinship, friendship or propinquity.

Select one:

a. Homogeneity

b. Individuals

c. Inputs

d. Services

Question 24
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The only part of the theory of value which treats of the short period, in which the
technological stock of capital equipment is given, has any application.

Select one:

True

False

United Kingdom Company Law provides that companies can take two forms, namely limited
liability companies or joint stock limited companies.

Select one:
 True

False

Question 26
Correct

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The costs of production which determine supply price consist of wages and profits.

Select one:

True

False

Question 27
Correct

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The theory of ________ examines the tradeoffs that people face in their role as consumers.

Select one:

a. Consumer choice

b. Circular-flow diagram

c. Enrico Barone

d. Samuelson Rule
Decision management includes the decision's initial proposal and its implementation after
authorization while decision control includes the examination and approval of the proposed
decision and supervision of its implementation.

Select one:

True

False

Question 30
Correct

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________ wrote that the definition of corporate controlis the authority to employ and dismiss
managers at the highest level and to determine their remuneration.

Select one:

a. External control mechanisms

b. Henry G. Manne

c. Berle and Means

d. Michael Jensen

Gornen's theoryof social capital is that "horizontal" face-to-face integration spills upwards
into a nationally integrated network of hierarchical institutions of civil society to make
democracy work.

Select one:
True
False
The category of land includes all natural resources and these natural resources include the
land itself, as well as any minerals, oil deposits, timber, or water that exists on or below the
ground.
Select one:
True
False
Familial economics is the study of decisions, relationships and behavioral patterns of
individuals, families, organizations, industries and markets.

Select one:

True

False

Question 37
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The comparative advantage production of a good is if the individual can produce more than
the other individuals.

Select one:

True

False

The wage-labor based social security system is not welfare and definitely not a hand-out
from the government but a paid-for insurance system.

Select one:

True

False

Question 41
Incorrect

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 Flag question

Question text
The General Equilibriumtheory came about in the latter half of the 19th century explicitly in
the form of Leon Walras' 1874 work, Elements of Pure Economics, and subsequently with
the addition of graphical representation in his 1892 paper "Geometrical Theory of the
Determination of Prices".

Select one:

True

False

John Stuart Mill who held that the utilities of different commodities were not independent
with some commodities functioning as substitutes or complements for each other or the
consumption of a commodity affecting the utility of another commodity in some fashion.

Select one:
True
False
The classical economist thinks of a position of equilibrium as a position towards which an
economy is tending to move as time goes by.

Select one:
True
False
Oikonomiks is a studied human activities involved with "wealth-getting" which could be
unnatural as well as natural.

Select one:
True
False
The City of London Regulations of the United Kingdom define control rights as meaning the
ownership or joint ownership of 30% or more of the voting shares in a company whether or
not the amount owned constitutes the actual voting rights.

Select one:
 True
False
Absolute advantage is the production of a ________ if the individual can produce more than
the other individuals.

Select one:
a. Social security
b. Good
c. Production
d. Barter system
Residual rights of control are the power to make decisions regarding the distribution of the
residue produced under the contract.

Select one:
True
False

Investment is making current products available for the workers to consume in the
meantime.

Select one:
True
False
Walras and Pareto started from observed disequilibrium and through a process of
adjustments, they approached general equilibrium.

Select one:
True
False
Chrematistiks was an analysis of how decisions were made regarding the management of
resources.

Select one:
True
False
Economist also uses models to learn about the world but instead of being made of plastic,
they are most often composed of diagrams and equations.

Select one:
 True
False
The absolute price commodity is a measure of how expensive a good is in terms of units of
some other good or service.

Select one:
True
False
The cost a capitalist who has the machine built in his own workshops will expect to receive,
from sales of the final output, includes profit on the interest on the cost of having the
machine built reckoned over the period of construction.

Select one:

True

False

Question 12
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The theory of consumer choice examines the tradeoffs that people face in their role as
Producers.

Select one:

True

False

________ represents the flows of goods and services between households and firms.

Select one:
a. Enrico Barone
b. Circular-flow diagram
c. Consumer choice
d. Samuelson Rule
Circular-flowdiagram offers a simple way of organizing all the economic transactions that
occur between households and firms in the economy.

Select one:
True
False
Jeremy Bentham draws an analogy between the Principles of Maximum Energy and the
Principles of Greatest Happiness.

Select one:

True

False

Question 17
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Adam Smith is the famous seventeenth century scientist and mathematician allegedly
became intrigued one day when he saw an apple fall from an apple tree.

Select one:

True

False

Monetary companies own the factors of production and consume all the goods and services
that the firms produce.

Select one:
True
False
Walter Korpi argued that previously relatively backward nations in the ________ were rather
catching up with Sweden than Sweden lagging behind and that this was only to be
expected since higher growth rates are to be expected from countries that from the outset
are relatively poorer.

Select one:
a. Social exclusion
b. Money
c. OECD
d. Social Capital
The characteristic by which goods are specified is that they have value that is purchasing
power over each other for which the list of goods is quite specific.

Select one:
True
A single largest social security system is the old age insurance for those over 20 years of
age.

Select one:
True
False
Social capital networks produce goods and ________ that are not a new phenomenon but
they are an inevitable part of every society, ancient or modern, high income or low income.

Select one:
a. Inputs
b. Welfare
c. Individual
d. Services
Hall and Hitchsummarize what they found in their results that the intersection between the
official lie and the private truth has created unstable welfare systems.

Select one:

True

False

Question 25
Incorrect
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Arthur Montblancis the best known of the early contributors to French rationalist
microeconomics wherein he perceives the quantity demanded as a continuous function of
the price.

Select one:

True

False

Andrew Strowsky is an Austrian who developed the concept of marginal utility concurrently
and independent of Jevons.

Select one:

True

False

Question 27
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Firms produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

Select one:

True
 False

Question 28
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Holistic characterizations of cultures and societies as trusting as well as thick or thin in
network structures are only meaningful insofar as there is a substantial amount of ________
within a society or at least one perspective is hegemonic.

Select one:

a. Homogeneity

b. Individual

c. Transitionary

d. Welfare

Question 29
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The regional self-interest means that individuals are assumed to select the alternative(s) that
they believe will make them happiest, given the information that they possess at the time of
the decision.

Select one:

True
 False

Pareto was the successor to Walras at the University of Lausanne whose name has been
associated with the basic criteria used as a measure of efficiency.

Select one:

True

False

Question 31
Correct

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International market is taken into account where the demand for a product includes both
domestic and foreign demand.

Select one:

True

False

Partnershipsare the result of the extension of proprietorial enterprises wherein if proprietors

establish a partnership by means of a contract they become partners.

Select one:
True
False
Cournot influence on the development of microeconomics is through the work of Leon
Walras.
Select one:
True
False
According to Mill's theorem, if private parties can bargain without cost over the allocation of
resources, then the private market will always solve the problem of externalities and allocate
resources efficiently.

Select one:
True
False
Economic good is if the quantity of the good demanded exceeds the quantity supplied at a
zero price.

Select one:
True
False
Self-interest people may donate their time to charitable organizations, give gifts to loved
ones, contribute to charities and engage in other similarly altruistic activities.

Select one:

True

False

Question 38
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Egoistic Hedonism was defined by Sidgwick as the system that fixes as the reasonable
ultimate end of each individual's action his own greatest happiness.

Select one:

True

False

Question 39
Correct
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John Stuart Mill is an English philosopher who laid the foundation for British Utilitarian
microeconomics in his Introduction to the Principles of Morals and Legislation.

Select one:

True

False

Question 40
Correct

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General equilibrium model explains how ________ used to produce a set of goods that will
result in the maximum social wealth.

Select one:

a. Services

b. Individual

c. Inputs

d. Welfare

Question 41
Incorrect

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 Flag question

Question text
Straight system is a market system in which goods or services are traded directly for other
goods or services.

Select one:

True

False

Firms produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

Select one:
True
False
Professor Michael Useemof the U.S. Corporate Governance Authority and the Wharton
School stated that the American enterprise system has been transformed from "de facto
capitalism" with de facto management control to "investor capitalism" where the investor
exercise effective constraints on managers.

Select one:

True

False

Question 45
Correct

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Capital when it consists of un-invested finance is a sum of money and the net receipts of a
business are sums of money.

Select one:

True

False

Question 46
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________ are a necessary part of a modern society, which by definition requires impersonal
bureaucratic organizations of state and market that can routinely produce complex goods
such as automobiles and services such as university education.

Select one:

a. Economy

b. Formal organizations

c. Income

d. Scarce resources

Question 47
Incorrect

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Babbage pioneered the use of utilitarian calculus to obtain judgments about the social
interest by aggregating the personal interests of different individuals in the form of their
respective utilities.

Select one:

True

False

The separation of ownership and control refers to the phenomenon of the almost total lack
of control rights or lack of direct control rights over company management policy by
shareholders in privately held corporations.

Select one:

True

False

Question 49
Correct

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Internal control mechanisms of corporate governance is mainly reflected in the market for
corporate control and especially in contention for control rights.

Select one:

True

False

Question 50
Incorrect

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 Flag question

Question text
Finance is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce, and so
contribute to maintaining the level of profits.

Select one:

True

False

In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduceagency costs.

Select one:
True
False
Zhu Yikun succinctly defines corporate control as the power exercised over the company
with varying degrees of influence by shareholders or those with related benefits.

Select one:
True
This monetary economy individuals trade goods or services for money and then use this
money to buy the goods or services that they wish to acquire.

Select one:

True

False

Question 4
Correct

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 Flag question

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Henry Wright defines social capital in terms of networks that can be used as instruments for
the production of goods and services.

Select one:

True

False

Question 5
Correct

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________ was developed by utilitarian economists such as Marshall and Pigou, taking
inspiration from their predecessor Jeremy Bentham.

Select one:

a. Henry G. Manne

b. Traditional welfare economics

c. External control mechanisms

d. Evolutionary game

Question 6
Correct

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Scarcity implies the existence of tradeoffs wherein these tradeoffs can be illustrated quite
nicely by a production possibilities frontier.

Select one:

True

False

Question 7
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Swedish right-wing politician and think-tank activist Ron Vane exposes clearly his
arguments in his pamphlet Svaghetens moral.

Select one:

True

False

Question 8
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Question text
Godel's proof is the boundary of the analyticity of arithmetic was not airtight and for the
Colloquium's work on general equilibrium theory, Carnap's invocation of ever richer
arithmetical languages was problematic and would prove to be prophetic at least with
regard to general equilibrium theory.

Select one:

True

False

Question 9
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The Germans are often regarded as the first important contributors to Western culture.

Select one:

True

False

Question 10
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Social psychological theories of trust normally treat ________ as a diffuse attribute of an
individual--a person trusts others in many different situations.
Select one:

a. Utilitarian

b. Attributes

c. Social capital

d. Dupuit

Question 11
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________ provided a justification for and explanation of the activities of the rising merchant
class.

Select one:

a. Microeconomics

b. Mercantilism

c. Law of demand

d. Economic theory

Question 12
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________ started from a pragmatic perspective, defining corporate control as the actual right
to choose the members of the board of directors of a company or the majority of the
members whether through the exercise of legal powers or by bringing pressure to bear.

Select one:

a. External control mechanisms

b. Henry G. Manne

c. Berle and Means

d. Michael Jensen

Question 13
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Social ability refers to the ability to organize production and bear risks.

Select one:

True

False

Stefan Folster and Fredrik Bergstrom summarize their results that the intersection between
the official lie and the ________ has created unstable welfare systems.

Select one:

a. Resources

b. Private truth

c. Additional cost

d. Next-best
Question 16
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A capitalist who buys a machine readymade pays a price for it which includes profit to the
capitalist who sells it.

Select one:

True

False

Question 17
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Bureaucratic organizations are predictably expected to deliver goods and services to
individuals as citizens and customers.

Select one:

True

Saving consists, in essence, in employing labor now in a way which will yield its fruits in the
future.

Select one:

True
 False

Question 19
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Industrial welfare economics was substantially criticized if not undermined by the argument
that interpersonal comparisons of utility had no scientific basis.

Select one:

True

False

________ is the study of decisions, relationships and behavioral patterns of individuals,

families, organizations, industries and markets.

Select one:

a. Mercantilism

b. Microeconomics

c. Law of demand

d. Economic theory

Question 22
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Adam Smith developed an analysis of the moral system called The Theory of Moral
Sentiments as well an economic system called The Wealth of Nations.

Select one:

True

False

Question 23
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There is information that no one in Sweden complain that those who have pension
insurance in a private company become dependent upon that company nor do that such
insurance create disincentives to work.

Select one:

True

Pareto analyzed the process by which a social welfare function might be formulated,
arguing that a social welfare function is only a valid concept if it is derived from the
preferences of the individuals composing the society.

Select one:

True

False

Question 25
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The main system of protection from income-loss and/or absence from the labor market in
Sweden remains the overall social security system.

Select one:

True

False

Question 26
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Total utility of society was simply the sum of the individual utilities which focuses the
analysis on the ________.

Select one:

a. Individual

b. Welfare

c. Transitionary

d. Homogeneity

Question 27
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This Microeconomics may be used as a tool to aid in the decision making process.

Select one:

True

False

Question 28
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The process of accumulation consists in refraining from consuming current output in order
to add to thestock of wealth.

Select one:

True

False

China transactions in enterprise control rights began in 1984 in such cities as Baoding and
Beijing.

Select one:
True
False
The law of supply is the inverse relationship exists between the price of a good and the
quantity demanded in a given time period.

Select one:
 True

False

Question 31
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Cost of capital includes the cost of capital goods and since they must be constructed before
they can be used, part of the cost of capital is interest over the period of time between the
moment when work was done in constructing capital goods and the time when they are
producing a stream of output.

Select one:

True

False

Question 32
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The Welfare Capital survey found that in Russia, four-fifths to nine-tenths do not belong to
any voluntary association.

Select one:

True

False
Question 33
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The production possibilities frontier simplifies a complex ________ to highlight and clarifies
some basic ideas.

Select one:

a. Economy

b. Scarce resources

c. Formal organizations

d. Income

Question 34
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________ approach encourages the focus to be on individual behavior and the optimization
of the welfare of the individual.

Select one:

a. Dupuit

b. Social capital

c. Attributes
d. Utilitarian

Question 35
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Opportunity cost is defined as the cost of not selecting the ________ alternative.

Select one:

a. Resources

b. Private truth

c. Additional cost

d. Next-best

Question 36
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Entrepreneurial ability refers to the ability to organize ________ and bear risks.

Select one:

a. Barter system

b. Production

c. Good
d. Social security

Question 37
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Manufacturers own the factors of production and consume all the goods and services that
the firms produce.

Select one:

True

False

Question 38
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________ of corporate governance are mainly reflected in the market for corporate control
and especially in contention for control rights.

Select one:

a. Berle and Means

b. External control mechanisms

c. Michael Jensen

d. Henry G. Manne
Question 39
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Productiveness of capital consists in the fact that a unit of labor that was expended at a
certain time in the past is more valuable today than a unit expended today because its fruits
are already ripe.

Select one:

True

False

Question 40
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Goods that are used to produce other goods or services are called economic resources and
are also known as inputs or factors of production.

Select one:

True

Adam Smith and David Ricardo argued that similar benefits accrue from international
specialization and trade.

Select one:
True
False
Demand is the relationship that exists between the price of a good and the quantity
supplied in a given time period.

Select one:

True

False

Question 43
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Economists say that supplementary goods areincrease in the price of one result in a
reduction in the demand for the other.

Select one:

True

False

Economics evaluates the current state of our world and to speculate on ways that it might
be improved where it is an important aspect of our education.

Select one:

True

False

Question 45
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Dynamic change can also involve an increase in total welfare in the ________ insofar as
greater use of formal networks is more efficient and effective.

Select one:

a. Income

b. Household

c. Communist Party

d. Resources

Question 46
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When Adam delved and Eve span, there were evidently a spade and a spindle already in
existence.

Select one:

True

False

Question 47
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Zhu Yikun considered that claim to residue refers to residual rights of control with the
implication that those with claims regarding the ownership of residue are the contractual
controllers in respect of actions concerning the assets and have the final decision and also
that they bear operational profits and losses independently.

Select one:

True

False

Households and firms interact in two types of markets wherein in the markets for goods and
services, firms are buyers and households are sellers.

Select one:
True
False
Lenism developed the party as an organization with the totalitarian vocation of abolishing
informal social networks and mobilizing the population into party-led formal organizations
covering every sphere of social life.

Select one:

True

False

Question 50
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Market advantage is the production of a good if the individual can produce the good at the
lowest opportunity cost.

Select one:

True

False

The ________ survey found that in Russia, four-fifths to nine-tenths do not belong to any
voluntary association.
Select one:
a. OECD
b. Social Capital
c. Social exclusion
d. Money
________ suggested that a perfect market economy and a perfectly planned market economy
were equivalent.

Select one:
a. Samuelson Rule
b. Circular-flow diagram
c. Consumer choice
d. Enrico Barone
Education is a human capital determinant of individual ________ either directly or indirectly.

Select one:
a. Welfare
b. Individual
c. Homogeneity
d. Transitionary