Chp 5Economics Quiz

Which of the following is NOT listed as an alternative method of allocating scarce resources?

• Contest

• Market price

• Auction

• Lottery

What is the basis for allocating resources under a command system?

• Market competition

• Personal characteristics

• The order of someone in authority

• Majority rule

According to the text, for which type of goods does the distinction between those who can afford but choose not to buy and those who are too poor to buy matter?

• Luxury goods

• Essential items that poor people cannot afford

• Items allocated by lottery

• Goods allocated by force

What is a common characteristic of a command system that works well?

• The range of activities to be monitored is large.

• The lines of authority and responsibility are clear and activities are easy to monitor.

• It is easy for people to fool those in authority.

• It often fails to deliver an adequate supply of food.

What does majority rule decide in a representative government?

• How to allocate resources to the winner of a contest.

• The tax rates and how tax dollars are allocated among uses such as education and healthcare.

• How to allocate resources on a first-come, first-served basis.

• The biggest payoff for sports professionals.

Under what condition does majority rule work well according to the text?

• When the decisions being made affect a small number of people.

• When self-interest is the primary motivator for using resources.

• When the decisions being made affect large numbers of people and self-interest is suppressed.

• When resources are allocated to winners of contests.

How is the first-come, first-served method used according to the text?

• To elect representative governments.

• To allocate scarce resources such as highway space and restaurant table space.

• To decide tax rates and allocate tax dollars.

• To monitor and reward the efforts of players in a contest.

When does the first-come, first-served method work best for allocating resources?

• When there are plenty of resources for everyone

• When a scarce resource can serve just one user at a time

• When resources are allocated based on personal characteristics

• When resources are allocated through a lottery system

What is a common use of lotteries in resource allocation?

• To allocate landing slots to airlines at some airports

• To determine personal characteristics for resource allocation

• To serve as a method for first-come, first-served allocation

• To play a role in allocating resources through force

Which of the following is an unacceptable way of allocating resources based on personal characteristics?

• Choosing a marriage partner

• Allocating fishing rights

• Discriminating against visible minorities and women

• Allocating the electromagnetic spectrum