18 Questions
Which of the following best describes the mercantilist view on imports and exports?
Imports were considered bad but exports were considered good
What is the main impact of free trade between a high wage country and a lower wage country according to the passage?
Wages in the low wage country will decrease
Which of the following is NOT a way to invest money according to the passage?
Spending
What is the key difference between passive equity investment and active equity investment?
Passive investment has no expectation of having a say in how the asset is used, while active investment does
According to the passage, which of the following is true about the capital account?
A capital account surplus indicates an inflow of money into the country
What is the relationship between a trade deficit and the capital account according to the passage?
A trade deficit is offset by a capital account surplus
What is the primary consequence of a price floor (minimum price below equilibrium)?
It creates a surplus of the good or service
Which of the following is NOT a consequence of a minimum wage?
It reduces the overall quality of labor
Which of the following statements is true about prices?
Prices are not arbitrary and are not set by buyers or sellers
Which of the following statements is true about minimum wage?
Most economists argue against minimum wage
Which of the following goods or services can be legally given away or sold without price control, according to the text?
Most goods and services in our economy
Which of the following statements is true?
All of the above
What is the essence of the capitalist system described in the text?
Profit maximization through creative destruction
What is the primary factor that determines the value of money in a fiat money system?
The purchasing power of the money
Which of the following is NOT a feature of a private property system as described in the text?
Equal distribution of wealth among all citizens
What is the impact of importing goods from other countries on a nation's economy?
It causes prices to fall and eliminates jobs
Which of the following best describes the mercantilist view of international trade, as described in the text?
Money and wealth are synonymous, and economic activity is zero-sum
What is the primary factor that determines whether a producer makes a profit or a loss in a capitalist system?
Consumer demand and preferences for their products
Test your knowledge on the consequences of implementing a price floor and minimum wage. Learn about surpluses, impacts on quantity demanded, mechanisms to determine sales, reduction in consumer benefits, and effects on the quality of goods and labor market.
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