1 When did China begin the economic reforms that have basically dismantled the socialist economy in

Question

1. When did China begin the economic reforms that have basically dismantled the socialist economy in

China?

a. in the early 1950s

b. in the late 1970s

c. around 2000

d. during the Great Depression

e. during the Great Leap Forward

2. What does the 90-10 rule refer to?

a. In village economies, it took 90 percent of the workforce working in agricuure to feed themselves as well as the remaining 10 percent

b. At any point in time, about 90 percent of the population are stupid; the other 10 percent understand what is going on

c. At any point in time, about 10 percent of the population are stupid; the other 90 percent understand what is going on

d. Only 10 percent of the population own 90 percent of the weah

3. Growth in the Soviet Union was

a. always rapid

b. always slow

c. slow in the early years (1930s) but rapid in later years

d. rapid in the early years (1930s) but progressively slower in later years

e. virtually non-existent

4. Which part of the economy was responsible for the revival of Western European economies after 950 A.D., and again during the revival after 1500 A.D.?

a. The agricuural sector

b. The traditional part of the economy

c. The market part of the economy involved in trade

d. The government sector

e. The shadow economy

5. As a benchmark, how long have most U.S. recessions lasted?

a. About 5 months

b. About 16 months

c. About 36 months

d. About 4 years

e. About 10 years

6. According to the Soviets, what would determine when a socialist economy would be able to transition to a communist economy?

the transition would occur when the soviets were finally able to computerize material balancing

the transition would occur when money disappeared from the economy

the transition would occur when people were conditioned to accept the idea of distribution according to need

the transition would occur when Soviet authorities were convinced that world tensions had subsided to the point where communism was possible

the transition would occur when people were conditioned to accept the merits of Voluntary Exchange

7. In capitalism, workers are free to be hired or fired. The same is true of Soviet-style socialism, at least in theory. However, worker mobility in the Soviet Union was de facto (that is, in reality) limited by

a. Soviet pricing policies

b. the Soviet government’s monopoly on employment

c. distribution according to need

d. the Cold War

e. Material Balancing

8. The Soviet Union never produced very many automobiles. This was primarily due to

a. the technological backwardness of the Soviet economy

b. the fact that automobiles did not meet the subjective value criteria of Soviet consumers

c. the lack of interest in capital formation in the Soviet Union

d. the fact that automobiles did not meet the objective criteria of the Soviet leadership and planners

e. the fact that the Soviet Union had too few roads to justify large scale auto production

9. If Prof. St. Clair is an advocate of the Theory of Voluntary Exchange (and he is), what must he conclude about Justin Bieber tapes and concerts, and why?

a. these products are terrible and there is no way that anyone can defend such trash

b. the government can clearly see that these products have no value

c. these are good products because Bieber is the greatest singer of this generation, or all generations for that matter

d. No, Niel Diamond is the greatest singer of this generation, or all generations for that matter; but Bieber is a close second

e. Bieber may not be good, but it is better than country rap music

f. these products must be good if consumers want to freely part with their money to purchase them

10. Which of the following is true about your opportunity cost in attending or participating in this online class?

a. Since there is not dollar charge to attend or participate, there is no opportunity cost

b. There is no opportunity cost because it is always a joy to learn

c. The opportunity cost is measured by the value of the lost time as measured by what you would have been doing if they had not attend or participated in this class

d. The cost of gas and parking at the college

e. The cost of electricity and internet connection fees

11. Which assumption – ceteris paribus or mutatis mutandis – best describes the real world?

a. ceteris paribus

b. mutatis mutandis

c. neither is ever descriptive of the real world

d. each is equally descriptive of the real world

12. What to do about a sluggish economy (e.g., a recession) would be a topic primarily found in

real economics

nominal economics

real economics

macroeconomics

microeconomics

inflation analysis

13. In material balancing, the Soviets were usually able to attempt a balance

a) with sophisticated computer models

b) with more than 100 iterations

c) with input-output optimization techniques

d) with only three or four iterations

e) with no more than thirty to forty iterations

14. Friedman argued that political freedom was impossible without

a) government planning

b) economic freedom

c) equality of ownership of economic property

d) strong government regulation of markets

Economics