Mega Econ Review

Which country is LEAST capitalistic (ie no economic freedom)?

• Canada

• England

• Cuba

• Germany

Who benefits MOST from competition?

• Consumers

• producers

• governments

• foreign nations

How does the government promote competition in the private sector?

• practicing laisssez-faire (hands off)

• allowing large horizontal mergers

• passing laws to regulate monopolies

What effect will imposing a tariff on lumber from Canada do to the overall supply of lumber?

• the supply will be unchanged

• The supply will decrease

• The supply will increase

Providing assistance to a family whose head of household is physically disable is an example of the government attempting to...

• redistribute income

• promote competition

• control negative externalities

• define & enforce property rights

Why do nations trade?

• to get better products

• because of the principal of comparative advantage

• They want the world to be a better place

• To experience other cultures

What is gained by making a particular choice is called...

• opportunity benefit

• opportunity cost

• allocation

• scarcity

What should a company do to succeed in a globally competitive environment?

• innovate continuously

• introduce advanced technology

• improve research and design

• all of these!

Putting limits on pollution created by factories would involve the following role of the public sector?

• defining/enforcing property rights

• promoting competition

• controlling negative externalities

• resdistributing public goods

Which of the following is NOT a building block of a capitalism (market economy)?

• competition

• profit motive

• equality

• free enterprise