Econ 1a

Student: 1. Which of the following is a distinguishing feature of a command system? A. private ownership of all capital. B. central planning. C. heavy reliance on markets. D. wide-spread dispersion of economic power. 2. Which of the following is a distinguishing feature of a market system? A. public ownership of all capital. B. central planning. C. wide-spread private ownership of capital. D. a circular flow of goods, resources, and money. 3. Examples of command economies are: A. The United States and Japan. B. Sweden and Norway. C. Mexico and Brazil. D. Cuba and North Korea. 4. Of the following countries, which one best exhibits the characteristics of a market economy? A. Canada. B. Cuba. C. North Korea. D. China. 5. The French term â€Å"laissez-faire† means: A. â€Å"there is no free lunch. † B. â€Å"let it be. † C. â€Å"circular flow. † D. â€Å"public ownership. † 6. An economic system: A. requires a grouping of private markets linked to one another. B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem. C. requires some sort of centralized authority (such as government) to oordinate economic activity. D. is a plan or scheme that allows a firm to make money at some other firm's expense. 7. The term laissez-faire suggests that: A. land and other natural resources should be privately owned, but capital should be publicly owned. B. land and other natural resources should be publicly owned, but capital should be privately owned. C. government should not interfere with the operation of the economy. D. government action is necessary if the economy is to achieve full employment and full production. 8. Economic systems differ according to which two main characteristics? A. Who owns the factors of production, and the methods used to coordinate economic activity. B. The technology used in production, and the quantity and quality of natural resources. C. How goods are produced, and who gets them. D. The political system in place, and the degree of scarcity facing the economy. 9. Command systems are also known as: A. market systems. B. pure capitalism. C. laissez-faire capitalism. D. communism. 10. A fundamental difference between the command system and the market system is that, in command systems: A. the division of output is decided by central planning rather than by individuals operating freely through markets. B. all economic decisions are made by the government, whereas there is no government in a market system. C. scarcity does not exist, whereas it does in a market system. D. money is not used, whereas it is in a market system. 11. Which of the following is not a characteristic of the market system? A. private property. B. freedom of enterprise. C. government ownership of major industries. D. competition in product and resource markets. 12. Which of the following is a fundamental characteristic of the market system? A. property rights. B. central planning by government. C. unselfish behavior. D. government-set wages and prices. 13. Property rights are important because they: A. ensure an equal distribution of income. B. encourage cooperation by improving the chances of mutually agreeable transactions. C. guarantee that any exchange will make all parties better off than prior to the exchange. D. allow the government to control how resources are allocated. 14. Private property: A. discourages cooperation because people don't want to part with what they own. B. discourages innovation, as people are often afraid to risk losing their own property. C. encourages owners to maintain or improve their property, so as to preserve or enhance value. D. does everything indicated by the other answers. 15. Copyrights and trademarks are examples of: A. capital goods. B. human capital. C. property rights. D. public goods. 16. The regulatory mechanism of the market system is: A. self-interest. B. private property. C. competition. D. specialization. 17. Broadly defined, competition involves: A. private property and freedom of expression. B. independently acting buyers and sellers and freedom to enter or leave markets. C. increasing opportunity costs and diminishing marginal utility. D. capital goods and division of labor. 18. Competition means that: A. sellers can manipulate market price by causing product scarcities. B. there are independently-acting buyers and sellers in each market. C. a product can be purchased at a number of different prices. D. there is more than one seller in a market. 19. The division of labor means that: A. labor markets are geographically segmented. B. unskilled workers outnumber skilled workers. C. workers specialize in various production tasks. D. each worker performs a large number of tasks. 20. Specialization in production is important primarily because it: A. results in greater total output. B. llows society to avoid the coincidence-of-wants problem. C. allows society to trade by barter. D. allows society to have fewer capital goods. 21. Specialization-the division of labor-enhances productivity and efficiency by: A. allowing workers to take advantage of existing differences in their abilities and skills. B. avoiding the time loss involved in shifting from one production task to another. C. allowing workers to develop skills by working on one, or a limited number, of tasks. D. all of the means identified in the other answers. 22. Specialization in production is economically beneficial primarily because it: A. llows everyone to have a job which they like. B. permits the production of a larger output with fixed amounts of resources. C. facilitates trade by bartering. D. guarantees full employment. 23. On the basis of the above information it can be said that: A. no coincidence of wants exists between any two states. B. a coincidence of wants exists between Michigan and Washington. C. a coincidence of wants exists between Texas and Washington. D. a coincidence of wants exists between Michigan and Texas. 24. On the basis of the above information and assuming trade occurs between the three states we can expect: A. Washington to exchange apples with Texas and receive money in return. B. Washington to exchange apples with Michigan and receive money in return. C. Texas to exchange lettuce with Michigan and receive autos in return. D. Texas to trade lettuce directly for Washington apples. 25. Given the above information and assuming trade occurs between the three states we can expect: A. that there is no means by which Michigan can obtain lettuce while specializing in the production of autos. B. that money will not be needed to accomplish the desired exchanges. C. money to flow counterclockwise from Michigan to Texas to Washington. D. money to flow clockwise from Michigan to Washington to Texas. 26. Barter: A. is the major means of exchange in centrally planned economies. B. accounts for over 30 percent of the dollar volume of all exchange in the U. S. economy. C. entails the exchange of goods for goods. D. is used to circumvent the problem of a lack of coincidence of wants among potential buyers and sellers. 27. The â€Å"coincidence of wants† problem associated with barter refers to the fact that: A. for exchange to occur each seller must have a product that some buyer wants. B. money must be used as a medium of exchange or trade will never occur. C. specialization is restricted by the size or scope of a market. D. buyers in resource markets and sellers in product markets can never engage in exchange. 28. The use of money contributes to economic efficiency because: A. governmental direction of the production and distribution of output can be avoided by using money. B. roundabout production could not occur without the availability of money. C. it is necessary for the creation of capital goods. D. it promotes specialization by overcoming the problems with barter. 29. The presence of market failures implies that: A. oney is not an effective tool for exchange in a market system. B. there is an active role for government, even in a market system. C. individuals and firms should strive to be self-sufficient rather than specialize. D. command systems are superior to market systems in the allocation of resources. 30. Which of the following characteristics is least unique to a market system? A. private ownership of property resources B. competition among buyers and sellers pursuing monetary returns C. the widespread use of money D. freedom of enterprise and choice 31. Which of the following is one of the Five Fundamental Questions? A. Which products will be in scarce supply and which in excess supply? B. Who should appoint the head of the central bank? C. How much should society save? D. What goods and services will be produced? 32. If competitive industry Z is making substantial economic profit, output will: A. fall in industry Z, and firms will likely leave the market. B. fall in all industries except industry Z. C. expand in industry Z, as more resources will move to that industry. D. expand in industry Z, but no new firms will enter the market. 33. From society's point of view the economic function of profits and losses is to: A. romote the equal distribution of real assets and wealth. B. achieve full employment and price level stability. C. contribute to a more equal distribution of income. D. reallocate resources from less desired to more desired uses. 34. In a market economy a significant change in consumers' desire for product X will: A. alter the profits or losses received by suppliers of product X. B. cause a reallocation of scarce resources. C. cause some industries to expand and others to contract. D. do all of these. 35. Economic profits in an industry suggest the industry: A. can earn more profits by increasing product price. B. should be larger to better satisfy consumers' desire for the product. C. has excess production capacity. D. is the size that consumers want it to be. 36. Economic profits and losses: A. are both considered by economists to be a part of production costs. B. are essential to the reallocation of resources from less desired to more desired goods. C. have no influence on the composition of domestic output. D. equalize the distribution of income in the long run. 37. If consumer desire for product X increases, all of the following will occur except: A. an increase in the profits of industry X. B. n increase in the quantity of resources employed by industry X. C. an increase in the output of industry X. D. a decrease in the quantity of resources employed in industry X. 38. An increase in consumer desire for strawberries is most likely to: A. increase the number of strawberry pickers needed by farmers. B. reduce the supply of strawberries. C. reduce the number of people willing to pick strawberries. D. reduce the need for strawberry pickers. 39. If competitive industry Y is incurring substantial losses, output will: A. expand as resources move toward industry Y. B. contract as resources move toward industry Y. C. contract as resources move away from industry Y. D. expand as resources move away from industry Y. 40. The economic function of profits and losses is to: A. bring about a more equal distribution of income. B. signal that resources should be reallocated. C. eliminate small firms and reduce competition. D. tell government which industries need to be subsidized. 41. If a competitive industry is neither expanding nor contracting, we would expect: A. total revenue to be zero. B. economic profits to be zero. C. total opportunity cost to be zero. D. more resources to flow to that industry. 42. The competitive market system: A . encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques. B. discourages innovation because it is difficult to acquire additional capital in the form of new machinery and equipment. C. discourages innovation because firms want to get all the profits possible from existing machinery and equipment. D. encourages innovation because successful innovators are rewarded with economic profits. 43. In a market economy the distribution of output will be determined primarily by: A. consumer needs and preferences. B. the quantities and prices of the resources that households supply. C. government regulations that provide a minimum income for all. D. a social consensus as to which distribution of income is most equitable. 44. The most efficient combination of resources in producing a given output is the combination that: A. comes closest to using the same quantities of land, labor, capital, and entrepreneurial ability. B. can be obtained for the smallest money outlay. C. uses the smallest total quantity of all resources. D. conserves most on the use of labor. 45. Firms are motivated to minimize production costs because: A. t is the most environmentally friendly way to produce goods. B. least-cost production techniques use the smallest total quantity of resources. C. competitive pressures in the market will drive out higher-cost producers. D. the government provides tax credits and subsidies to low-cost producers. Answer the next question(s) using the following data which show all available techniques for producing 20 units of a particular commodity: 46. Refer to the above data. In view of the indicated resource prices, the economically most efficient production technique(s) is (are) technique(s): A. # 1. B. #2 and # 4. C. # 3. D. #1 and # 3. 47. Refer to the above data. Assuming that the firm is motivated by self-interest and that the 20 units which can be produced with each technique can be sold for $2 per unit, the firm will: A. realize an economic profit of $ 10. B. realize an economic profit of $ 4. C. not earn any economic profit. D. shutdown rather than incur a loss by producing. 48. Refer to the above data. If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land, 3 of labor, 1 of capital, and 2 of entrepreneurial ability, this technique would: A. not be adopted because, although it reduces production costs, it does not increase profit. B. be adopted because it would lower production costs and increase economic profit. C. not be adopted because it entails higher production costs than other available techniques. D. be adopted, even though economic profits would be reduced slightly. Answer the next question(s) on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3 respectively. 49. Refer to the above information. Which technique is economically most efficient in producing A? A. I B. II C. III D. IV 50. Refer to the above information. If the price of product A is $0. 50, the firm will realize: A. an economic profit of $ 4. B. an economic profit of $ 2. C. an economic profit of $ 6. D. a loss of $ 3. 51. In a competitive market economy firms select the least-cost production technique because: A. such choices will result in full employment of available resources. B. to do so will maximize the firms' profits. C. this will prevent new firms from entering the industry. D. â€Å"dollar voting† by consumers mandates such a choice. 52. The market system's answer to the fundamental question â€Å"What will be produced? † is essentially: A. â€Å"Goods and services that are profitable. † B. â€Å"Low cost goods and services. † C. â€Å"Goods and service that can be produced using large amounts of capital. † D. â€Å"Goods and services that possess lasting value. † 53. The market system's answer to the fundamental question â€Å"How will the goods and services be produced? † is essentially: A. â€Å"With as much machinery as possible. † B. â€Å"Using the latest technology. † C. â€Å"By exploiting labor. D. â€Å"Using the least-cost production techniques. † 54. The market system's answer to the fundamental question â€Å"Who will get the goods and services? † is essentially: A. â€Å"Those willing and able to pay for them. † B. â€Å"Those who physically produced them. † C. â€Å"Those who most need them. † D. â€Å"Those who get utility from them. † 55. The market system's answer to the fundamental question â€Å"How will the system accommodate change? † is essentially: A. â€Å"Through government leadership and direction. † B. â€Å"Through the guiding function of prices and the incentive function of profits. † C. Through training and retraining programs. † D. â€Å"Through trial and error. † 56. The market system's answer to the fundamental question â€Å"How will the system promote progress? † is essentially: A. â€Å"Through government funded research programs. † B. â€Å"Through redistribution of income to promote greater equality. † C. â€Å"Through training and retraining programs. † D. â€Å"Through the profit potential that encourages development of new technology. † 57. The advent of DVDs has virtually demolished the market for videocassettes. This is an example of: A. creative destruction. B. derived demand. C. apital accumulation. D. the difference between normal and economic profits. 58. â€Å"Consumer sovereignty† refers to the: A. fact that resource prices are higher than product prices in capitalistic economies. B. idea that the pursuit of self-interest is in the public interest. C. idea that the decisions of producers must ultimately conform to consumer demands. D. fact that a Federal agency exists to protect consumers from harmful and defective products. 59. The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market economy. This statement best describes the concept of: A. derived demand. B. consumer sovereignty. C. the invisible hand. D. market failure. 60. Which of the following is not one of the five fundamental questions? A. What prices will be charged for goods and services? B. Who will get the goods and services? C. What goods and services will be produced? D. How will the system promote progress? 61. â€Å"Consumer sovereignty† means that: A. buyers can dictate the prices at which goods and services will be purchased. B. advertising is ineffective because consumers already know what they want. C. uyers control the quality of goods and services through regulatory agencies. D. buyers determine what will be produced based on their â€Å"dollar votes† for the goods and services offered by sellers. 62. Which of the following best describes the invisible-hand concept? A. The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest. B. The non-substitutability of resources creates a conflict between private and public interests and calls for government intervention. C. The market system is the best system for overcoming the scarce resources-unlimited wants problem. D. Central direction by the government will improve resource allocation in a capitalistic economy. 63. The invisible hand refers to the: A. fact that the U. S. tax system redistributes income from rich to poor. B. notion that, under competition, decisions motivated by self-interest promote the social interest. C. tendency of monopolistic sellers to raise prices above competitive levels. D. fact that government controls the functioning of the market system. 64. The invisible hand concept suggests that: A. market failures imply the need for a national economic plan. B. ig businesses are inherently more efficient than small businesses. C. the competitiveness of a capitalistic market economy invariably diminishes over time. D. assuming competition, private and public interests will coincide. 65. Two major virtues of the market system are that it: A. allocates resources efficiently and allows economic freedom. B. results in an equitable personal distribution of income and always maintains full employment. C. results in price level stability and a fair personal distribution of income. D. eliminates discrimination and minimizes environmental pollution. 66. The market system: A. produces considerable inefficiency in the use of scarce resources. B. effectively harnesses the incentives of workers and entrepreneurs. C. is not consistent with freedom of choice in the long run. D. has slowly lost ground to emerging command systems. 67. According to the concept of the â€Å"invisible hand,† if Susie opens and operates a profitable childcare center, then: A. government should regulate the business to ensure quality. B. the profit Susie earns indicates that she is overcharging for her services. C. she has served society's interests by providing a desired good or service. D. his demonstrates that consumer sovereignty is not present in this market. 68. The invisible hand promotes society's interests because: A. individuals pursuing their self-interest will try to produce goods and services that people in society want and are willing to purchase. B. individuals will produce goods for others out of concern for their fellow human beings. C. it makes sure that everyone wins from competition in the market. D. government regulation pushes business into producing the right mix of goods and services. 69. The coordination problem in the centrally planned economies refers to the idea that: A. lanners had to direct required inputs to each enterprise. B. the price level and the level of employment were inversely related. C. the immediate effect of more investment was less consumption. D. exports had to be equal to imports for a central plan to work. 70. â€Å"Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time. This is a nearly impossible task without markets and profits. † This quotation best identifies the: A. incentive problem under central planning. B. oordination problem under central planning. C. self-sufficiency dilemma under communism. D. resource over-commitment problem under communism. 71. â€Å"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfill the output quantities specified in the central plan caused a chain-reaction of adverse repercussions on production. † This quotation best identifies the: A. incentive problem under central planning. B. self-sufficiency dilemma under communism. C. resource over-commitment problem under communism. D. coordination problem under central planning. 72. The incentive problem under communist central planning refers to the idea that: A. planners had to direct required inputs to each enterprise. B . workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products. C. the immediate effect of more investment was less consumption. D. exports had to be equal to imports for a central plan to work. 73. Suppose that an individual sees a tremendous opportunity to produce and sell a new product, but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the: A. coordination problem under communist central planning. B. self-sufficiency dilemma under communism. C. asymmetric information problem under communism. D. incentive problem under communist central planning. 74. Innovation lagged in the centrally planned economies because: A. there was too much domestic business competition. B. there was too much competition from foreign firms. C. enterprises resisted innovation in fear that their production targets would be raised. D. exports had to equal imports for the plan to work. 75. The fact that the major indicator of enterprise success in the Soviet Union and pre-reform China was the quantity of output implied that: A. product quality was neglected. B. production costs were minimized. C. product-mix met consumer needs. D. technological advance was too rapid. 76. Enterprise managers and workers in the Soviet Union often resisted innovations in production methods because: A. production targets were often increased when innovation occurred. B. there was a chronic shortage of computers. C. workers could not be reallocated geographically. D. innovations ordinarily increased dependence on world markets. 77. If products were in short or surplus supply in the Soviet Union: A. price and profit signals eliminated those shortages and surpluses. B. price and profit signals intensified those shortages and surpluses. C. producers would not react because no price or profit signals occurred. D. the planners would immediately adjust production to achieve equilibrium. 78. In what type of business do the owners bear no personal financial responsibility for the company's debts and obligations? A. Partnerships. B. Corporations. C. Sole proprietorships. D. In all of the businesses listed in the other answers. 79. The simple circular flow model shows that: A. households are on the buying side of both product and resource markets. B. businesses are on the selling side of both product and resource markets. C. households are on the selling side of the resource market and on the buying side of the product market. D. businesses are on the buying side of the product market and on the selling side of the resource market. 80. The two basic markets shown by the simple circular flow model are: A. capital goods and consumer goods. B. free and controlled. C. product and resource. D. household and business. 81. In the resource market: A. businesses borrow financial capital from households. B. businesses sell services to households. C. households sell resources to businesses. D. firms sell raw materials to households. 82. In the simple circular flow model: A. households are buyers of resources. B. businesses are sellers of final products. C. households are sellers of final products. D. there are real flows of goods, services, and resources, but not money flows. 83. Refer to the above diagram. Flow (1) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. 84. Refer to the above diagram. Flow (2) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. 85. Refer to the above diagram. Flow (3) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. 86. Refer to the above diagram. Flow (4) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. oods and services. D. consumer expenditures. 87. In terms of the circular flow diagram, households make expenditures in the _____ market and receive income through the _____ market. A. product; financial B. resource; product C. product; resource D. capital; product 88. In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make expenditures in the _____ market. A. product; financial B. resource; product C. product; resource D. capital; product 89. Households and businesses are: A. both buyers in the resource market. B. both sellers in the product market. C. ellers in the resource and product markets respectively. D. sellers in the product and resource markets respectively. 90. Refer to the above diagram. Arrows (1) and (2) represent: A. goods and resources respectively. B. money incomes and output respectively. C. output and money incomes respectively. D. resources and goods respectively. 91. Refer to the above diagram. Arrows (3) and (4) represent: A. goods and services respectively. B. incomes and consumer expenditures respectively. C. resources and goods respectively. D. consumer expenditures and income respectively. 92. Refer to the above diagram. Arrows (1) and (3) are associated with: A. the money market. B. the resource market. C. the product market. D. international trade. 93. Which of the following best illustrates the circular flow model in action? A. Bobbie goes to work and builds cars, and uses the income she receives to buy food at the grocery store. B. Evan buys a new couch; the owner of the furniture store uses some of the money from the sale to pay her supplier, and uses the rest to take her family out to dinner. C. Boeing experiences a surge in orders for new airplanes, prompting the company to hire more workers. D. All of these answers illustrate the workings of the circular flow model. 94. (Consider This) In 1975, McDonald's introduced its Egg McMuffin breakfast sandwich, which remains popular and profitable today. This longevity illustrates the idea of: A. opportunity cost. B. upsloping supply. C. consumer sovereignty. D. specialization. 95. (Consider This) In 2000, McDonald's introduced its McSalad Shaker, which failed to catch on with the public and was subsequently dropped from the menu. This failure illustrates the idea of: A. consumer sovereignty. B. technological change. C. downsloping demand. D. specialization. 96. (Consider This) Since World War II: A. North Korea's command economy has significantly outperformed South Korea's market economy. B. South Korea's command economy has significantly outperformed North Korea's market economy. C. North Korea's market economy has significantly outperformed South Korea's command economy. D. South Korea's market economy has significantly outperformed North Korea's command economy. 97. (Consider This) North Korea's command economy: A. is one of the few remaining command economies. B. has grown much faster than South Korea since the two countries were divided after World War II. C. produces a per capita GDP of nearly $25,000. D. has undergone significant market reforms and is now one of the fastest growing economies. 98. (Last Word) According to economist Donald Boudreaux, the world's tens of billions of individual resources get arranged productively: A. because government has become highly effective at central planning. B. because private property encourages people to consider the alternative uses of their resources and select those that provide the most rewards. C. because people tend to be creative and orderly. D. through random trial and error. 99. Last Word) According to economist Donald Boudreaux: A. private property eliminates the possibility that resource arrangements will be random. B. the market system threatens to do irreparable harm to the world's ecosystem. C. arranging resources under the market system is much like shuffling a deck of cards. D. the market system works wondrously for advanced industrial nations but not for developing nations. 100. Market economies use capital goods because they improve productive efficiency. True False 101. Money functions as a medium of exchange by eliminating the need for a coincidence of wants. True False 102. Consumer sovereignty means that legislation now protects the rights of consumers to dispose of their incomes as they see fit. True False 103. Specialization may expand total output even though the individuals involved may have identical abilities. True False 104. The wants of consumers are expressed in the product market with â€Å"dollar votes. † True False 105. Costs can be defined as total payments made to workers, land owners, and capital suppliers less payments to the entrepreneur for organizing and combining the other resources used to produce a good. True False 106. Continued losses in an industry will cause some firms to reduce output or eventually leave the industry. True False 107. The guiding function of prices tends to keep resources flowing toward their most highly valued uses. True False 108. The invisible hand refers to the many indirect controls that the Federal government imposes in a market system. True False 109. Central planning in the Soviet Union and pre-reform China emphasized the expansion of the production of consumer goods to raise the domestic standard of living. True False 110. Central planning often suffers from a coordination problem and an incentive problem. True False ch02 Key1. B2. C3. D4. A5. B6. B7. C8. A9. D10. A11. C12. A13. B14. C15. C16. C17. B8. B19. C20. A21. D22. B23. A24. A25. C26. C27. A28. D29. B30. C31. D32. C33. D34. D35. B36. B37. D38. A39. C40. B41. B42. D43. B44. B45. C46. B47. A48. B49. D50. B51. B52. A53. D54. A55. B56. D57. A58. C59. B60. A61. D62. A63. B64. D65. A66. B67. C68. A69. A70. B71. D72. B73. D74. C75. A76. A77. C78. B79. C80. C81. C82. B83. A84. B85. C86. D87. C88. C89. C90. D91. B92. B93. D94. C95. A96. D97. A98. B99. A100. TRUE101. TRUE102. FALSE103. TRUE104. TRUE105. FALSE106. TRUE107. TRUE108. FALSE109. FALSE110. TRUE ch02Summary Category # of Questions AACSB: Analytic 72 AACSB: Reflective Thinking 38 Blooms: Level 1 Remember 36 Blooms: Level 2 Understand 51 Blooms: Level 3 Apply 18 Blooms: Level 4 Analyze 5 Difficulty: 1 Easy 36 Difficulty: 2 Medium 69 Difficulty: 3 Hard 5 Learning Objective: 02-01 Differentiate between a command system and a market system. 3 Learning Objective: 02-02 List the main characteristics of the market system. 25 Learning Objective: 02- 03 Explain how the market system decides what to produce; how to produce it; and who obtains it. 40 Learning Objective: 02-04 Discuss how the market system adjusts to change and promotes progress. 14 Learning Objective: 02-05 Describe the mechanics of the circular flow model. 16 McConnell – Chapter 02 115 Topic: Characteristics of the market system 25 Topic: Circular flow model 16 Topic: Demise of the command systems 13 Topic: Economic systems 10 Topic: Five fundamental questions 38 Topic: Invisible hand 8

Good and Evil in Beowulf Essay

The story of Beowulf was probably composed in England sometime in the Eighth Century AD, and written down circa 1000 AD, by a literate scop (bard) or perhaps a Christian scribe who was possibly educated in a monastery. The poem was created in oral tradition and was transferred to writing over time. It had its roots in folk tales and traditional stories until some very talented poet put it in something very near to its current form. The poem was more than likely performed for audiences at court or on the road as the scop found audiences to support him. It was sung or chanted rather than recited it, and usually to the accompaniment of a harp. There was a constant struggle between good and evil in the story. Beowulf, God, and Wiglaf represented good in the poem whereas Grendel, his mother, and Cain portrayed the contrasting side of evil. Beowulf and Grendel represented the ultimate struggle of good and evil. Grendel tried to destroy everything around him while Beowulf tried to do good all the time. The first battle between Beowulf and Grendel, Beowulf was God (good) and Grendel was Cain (evil). This was actually an allusion from the Bible, the story of Cain and was used to compare God’s feelings of Grendel, a descendant of Cain. The book stated, â€Å"†¦Since Cain had killed his only / Brother, slain his father’s son / with an angry sword. God drove him off, / outlawed him†¦Ã¢â‚¬ . Cain killed his brother because he was evil and God shunned and marked him for his evilness. God used his wrath to take care of Cain. God had the same feelings for Grendel. Grendel was described as a vicious monster that was an offspring of everything evil, God refused to forgive Grendel and favored Beowulf’s pride over Grendel’s sins. In the battle, God granted Beowulf overwhelming victory. The book stated, â€Å"The Ruler of the heavens brought about a right issue, when once more he stood up with ease. † God stood with ease because the beast he hated, Grendel, was dead. Beowulf was a mighty, honorable hero who had super strength and the ego to match his strength. He defeated Grendel with his bare hands, and then he fought Grendel’s vengeful mother. Tired and torn, Beowulf, through his goodness, was able to vanquish Grendel’s mother. , At the brink of exhaustion, Beowulf grabbed a monstrous sword and the book continued, â€Å"he struck furiously the blade went straight through the doomed body. † This was the perfect example of goodness. The story of good and evil was told from the beginning of man’s existence. Beowulf, revealed how this was evident and explained the side of good as depicted in the hero Beowulf. Evil was personified in Grendel, Beowulf’s, opposite, the man-eating beast that terrorized humanity. As long as the delicate balance of good and evil was recognized the characters in the epic related to the concept of good and evil. Good won out every time there was a contest because God wanted good to prevail. Beowulf showed how good was related to evil. This story represented these qualities in both main characters. The struggle began when God allowed Satan dominion over the earth. The battle between them had been recorded throughout literary history. Some of the heroes that had challenged Satan did so to protect the weak. Others fought for fame and glory. The theme of good vs. evil that was present in the story of Beowulf, it became the classic foundation of many modern stories. Beowulf and Grendel represented the ultimate struggle of good and evil. Grendel tried to destroy everything around him. To Beowulf, this was another conquest. It allowed him to do yet another good deed that people talked about for a long time. Beowulf represented God and Grendel was Satan. The struggle between God and Satan had existed throughout time. Beowulf was all that was good, moral, and ethical. He lived by the rules of God. Grendel denounced those rules to live by his own. Thinking only of that which gave him pleasure, he attempted to destroy everything good and kind. Truly, Beowulf was like a parent and Grendel was like a child whom he chastised. Beowulf displayed a variety of things that the Anglo-Saxon people valued; many of those traits were expressed through the main character, Beowulf. In him, was seen the qualities of courage, loyalty and a thirst for fame. The character and story also had one running theme throughout, the age-old subject of good versus evil. Beowulf was the epic hero of this poem. He embodied all the characteristics that a hero should, such as bravery, loyalty and strength, both physical and mental. He was the archetypal hero. He fought for good and represented it as well. Beowulf signified good, but there was a contrasting evil to complete the balance. The monster Grendel and his mother were that evil. The mere look of them left the impression of fear and sin. â€Å"He strode quickly across the inlaid floor, snarling and fierce: His eyes gleamed in darkness, burned with a gruesome Light. † Their wickedness seemed to spread to their home, infecting the lake in which they lived. â€Å"A deer, hunted through the woods by packs of hounds, a stag with great horns, though driven through the forest from faraway places, preferred to die on those shores, refused to save its life in that water. † This signified good and evil. Beowulf confronted the monsters and defeated them. (Baldwin, 99). With each of the characters representing good and evil respectively, Grendel’s defeat clearly symbolized Beowulf and his goodness overcoming the beasts’ wickedness, just as we would view Christ defeating Satan. Throughout history and in endless fairytales, good was always victorious over evil. The white knight always defeated the dragon. This was no exception with Beowulf. Though the poem ended in his demise, Beowulf was remembered for being the hero that saved his people from the evils of their world. In conclusion, in the epic Beowulf, there was a constant struggle between good and evil. Beowulf and Grendel represented the ultimate struggle of good and evil. Grendel tried to destroy everything around him while Beowulf tried to do good all the time.

How Does Williams Present the Themes of Illusion and Fantasy in a Streetcar Named Desire?

How does Williams present the themes of illusion and fantasy in A Streetcar Named Desire? The theme of reality vs. fantasy is one that the play centres around. Blanche dwells in illusion; fantasy is her primary means of self-defence, both against outside threats and against her own demons. Throughout the play, Blanche's dependence on illusion is contrasted with Stanley's steadfast realism, and in the end it is Stanley and his worldview that win. To survive, Stella must also resort to a kind of illusion, forcing herself to believe that Blanche's accusations against Stanley are false so that she can continue living with her husband. One of the main ways Williams dramatises fantasy’s inability to overcome reality is through an exploration of the boundary between exterior and interior. The set includes the two-room Kowalski apartment and the surrounding street. Williams’ use of a flexible set that allows the street to be seen at the same time as the interior of the home expresses the idea that the home is not a place of safety. The characters leave and enter the apartment throughout the play, often bringing with them the problems they encounter outside. For example, Blanche refuses to leave her prejudices against the working class behind her at the door. The most notable instance of this effect occurs just before Stanley rapes Blanche, when the back wall of the apartment becomes transparent to show the struggles occurring on the street, foreshadowing the violation that is about to take place in the Kowalski’s’ home. Blanche is the most fascinating character in A Streetcar Named Desire. One reason for this is that she has an absolutely brilliant way of making reality seem like fantasy, and making fantasy seem like reality. This element of Blanche's personality is what makes her character interest the audience and contribute to the excellence of the work. Returning to the beginning of the play, Blanche, shocked with the  dirtiness  and gloominess of Stella and Stanley's home in New Orleans, looks out the  window and says ‘Out there I suppose is the ghoul-haunted woodland of Weir! ‘, to which Stella replies ‘No honey, those are the L and N tracks. ‘ Blanche would assume that something so common and simple as noisy, dark railroad tracks might as well be ‘ghoul-haunted woodlands. Further evidence of Blanche's warped view of reality and fantasy is shown throughout the entire play. She seems to hint to Stella and Stanley, and therefore the audience, that she is actually much more than she seems. In scene  seven, Blanche soaks in a tub, singing: ‘Say, it's only a paper moon, sailing over a cardboard sea -But it wouldn't be make-believe If you believed in me! It's a Barnum and Bailey world, Just as phony as it can be -But it wouldn't be make-believe If you believed in me! ‘ As she sings this song, telling the story of her tendency to believe a more pleasant, warped view of reality over the actual reality, Stanley is telling Stella the horrifying truth about Blanche's scandalous past. These lyrics sum up Blanche’s approach to life. She believes that her lying is only her means of enjoying a better way of life and is therefore essentially harmless. In scene nine, Blanche is confronted by Mitch, who has learned the truth about her past. Mitch tells Blanche that he has never seen her in the light. He tears Blanche's paper lantern off of the plain, bright light bulb, and tries to see her as she really is, and not in a view warped by Blanche's efforts to make herself seem more innocent, young, and  beautiful  than she is. Blanche responds to this by saying ‘I don't want realism. I want magic!†¦ I try to give that to people. I misinterpret things to them. I don't tell truth, I tell what ought to be truth†¦ Don't turn the light on! ‘ This intense, frightening scene reveals to the audience the way Blanche views the world. Tennessee Williams' use of this kind of dual view of the world to develop Blanche's character is a perfect example of the way A Streetcar Named Desire makes the audience react to the characters in the play. The use of light and dark links to the key theme of fantasy and reality. The light is the truth, and this is what Blanche always tries to cover up. Stanley wants the truth so rips away any protection Blanche hides behind, for example the paper lantern over the naked bulb. The Streetcar light that always shines through the window, is trying to uncover the truth so Blanche ides away whenever it drives by, ‘A locomotive is heard approaching outside. She claps her hands to her ears and crouches over. ’ In conclusion, the reader of A Streetcar Named Desire is not only entertained by an interesting story when they read the play. They are also thrust into a reality which is not their own, yet somehow seems familiar. This realistic fantasy Williams creates with his brilliant use of symbolism, intriguing characters, and involving action in the play causes the reader to connect fully with the setting, characters, conflicts, and emotions within it.

Communication (Neo-Liberalism) Essay Example | Topics and Well Written Essays - 1250 words

Communication (Neo-Liberalism) - Essay Example Surveillance has become part of media and to some extent life too. Current communication policy is ruled by the technological discoveries and achievements. UNESCO's New World Information and Communication Order have sponsored various world summits to evolve and update communication policies based on the emerging neoliberalism and other connected theories. Neoliberal visions and revisions of the global communication policy are focused on the technical aspects of communication. Globalization, technical evolution and democratization are the forces that have introduced neoliberalism. According to Andrejevik (2004), reality surveillance shows like Big Brother are not tremendously popular and is only viewed by spectators willing to enter into a virtual space; but this does not mean that it is not successful and its success is attributed to its democratic attitude, though considered to be a distorted version by others. He says this is mainly because of the emergence of a surveillance based economy gives authenticity to the reality shows and how the society is reacting to them without being obviously revolutionalised by them. Also there is a genuine fear that the bad old days of police states, unlimited surveillance and authoritarian regimes are not far off, due to the communication and media technologies that are becoming more and more aggressive every day. In addition to this, sociologists are worried about the addictive shopping that might overtake all other priorities. Bennett, who gives historical and political background through Freudian concepts of psychoanalysis as a contributing factor, invoking Freud's penchant for economic explanations of the psyche, talks about getting motivated by the unconscious marketing and goes to the extent of sexualizing advertised products which will once again lead the unconscious buyers into compelling addictive shopping. "Addictive shopping first entered the psychiatric textbooks in 1915; but it was only in the 1990s that it became the subject of a raft of psychological theories and therapies offering to explain and address the emotional needs and personality traits assumed to give rise to compulsive spending" Bennett (2005). No doubt, this is stating it in its extremity with 'utmost skepticism'; but the days of unlimited freedom, individuality and privacy seem to be very fast disappearing and this is a disturbing trend. According to Williams tries to attach neoliberalism into Marxist theories and thinks it is necessary to understand both the dominant and the residual cultures. He argues that cultural emergence could be complex; but is of major importance, as the social order is changing and right now it is difficult to differentiate between the dominant and the secondary. Because the society under neoliberalism has not yet reached the changed perspective; instead, it is still going through the stage of pre-emergence of the final form."Again and again what we have to observe is in effect a pre-emergence, active and pressing, but not yet fully articulated, rather than the evident emergence which could be more confidently named. It is to understand more closely this condition of pre-emergence, as well as the more evident forms of the emergent, the residual, and the dominant, that we need to explore the concepts of struct6ures of feeling," Williams (1977). Neoliberalism is

Rhetorical Analysis Assignment Example | Topics and Well Written Essays - 1500 words

Rhetorical Analysis - Assignment Example This paper is focused on the identification of rhetoric strategies in an academic and professional paper written by Saurav K. Dutta and Raef A. Lawson in the domain of managerial accounting. The title of paper is â€Å"Boosting Management Accounting’s Stature on Campus† and it has been published in year 2007. ANALYSIS OF RHETORICAL STRATEGIES Style and Tone The style adopted by authors of this paper is comprised of long and fluent sentences along with descriptive and appropriate usage of words. The appropriation of words used by the authors is strictly in concordance with the field which this paper has associations that is business. Structure of sentences is simple and effective which demonstrate the informative intention of authors. However, the paper is aimed to persuade the academic institutions, authors have adopted the straight writing technique in which simple structured sentences are presented to inform the audience about the criticality of the issue. As this art icle is professional as well as academic, the tone utilized by authors is highly descriptive. However, authors also have acquired a sarcastic tone to signify the criticality and to represent historic happenings in the domain of management accounting. ... Followed by the construction of the argument in which authors have demonstrated the flaw of contemporary academics on the basis of which the problems are developed as associative with the field of management accounting. By developing the whole explanation for the problem, authors have proposed a way out which is the basic purpose of the author to be developed. In this domain, the whole paper represents a systematic deliverance of the argument with a demonstration of excellence by the authors in the related field of study. Due to this, authors have successfully developed the stature of authors as credible and authentic which assists to imply the intended argument in a more sufficient manner (Dutta and Lawson 43-45). Pathos The presence of pathos in the article is distinctively highlighted with the explication of issue and its association with individuals who are professionally accountants in a negative manner. Authors have identified a significantly critical issue regarding the field of accountancy on the basis of which authors developed that this critical issue is decreasing the need of accountants. There are two prominent features in the paper which depicts the persistence of pathos acquired by authors in order to persuade the targeted audience on emotional plain. Firstly, authors have portrayed a factor of concern for the field of management, business and accounting that is the declining need and efficiency of accountancy in contemporary times. It creates an immensely persuading impact on the academies of business and field of accounting because of the importance which is intrinsically related to this discipline of studies. On the other hand, it illuminates problems for individuals who are acquiring the academic

Fiscal and Monetary Policy Essay Example | Topics and Well Written Essays - 2500 words

Fiscal and Monetary Policy - Essay Example This paper is aimed at investigating and defining the best way through which Britain should tackle the present financial crisis. To achieve this objective, the IS/LM model will be employed to see how various policy measures affect the interest rate, national income and inflation rates. Fiscal policy refers to a situation whereby the government restores equilibrium in the economy by making changes to taxes or government expenditure on public goods and services (Smullen & Hand 2005). When there is under-utilisation of capacity, the government can increase capacity utilisation by reducing taxes (that is through a reduction in tax rates or tax base) or by increasing spending on public goods and services as well as subsidising the production of certain goods and services (Smullen & Hand 2005; Visser 2004:43). Fiscal policy aimed at increasing money supply is referred to as easy fiscal policy (Smullen & Hand 2005). On the other hand, when there is over-utilisation of capacity, the government either increases taxes (through and increase in tax rates or tax bases) or reduces spending on public goods and services (Black 2002). It also reduces subsidies and transfer payments. This type of fiscal policy is referred to as tight fiscal policy (Black 2002). ... Fiscal dominance occurs when government can determine the stock of debt, and the path of total expenditures and taxation (Frantiani & Spinelli 2001: 255). Under these conditions, the government can influence the inflation rate, the future flow of monetary base by raising the permanent level of expenditures without at the same time raising taxes. Fiscal dominance is therefore a scenario whereby monetary policy is driven by fiscal policy 1.3 Monetary Policy Monetary policy is the means by which the Central Bank regulates the economy through changes in the supply of money. This can be done by either printing more money or withdrawing money from the economy through the sale of bonds or through the altering of short-term interest rates. There are two types of monetary policies including easy and tight monetary policy. Tight monetary policy is geared towards reducing the amount of money in supply while expansionary monetary policy leads to an increase in the supply of money. Inna (2006) notes that easy monetary policy leads to a fall in the real interest rate thus lowering the cost of capital causing an increase in investment spending, which increases aggregate demand, and, ultimately, output. According to Leviathan (2003:1), Monetary dominance refers to a situation whereby fiscal policy is influenced by monetary policy. Liviatan states, that: "the benchmark definition of monetary dominance is that the fiscal policy has to accommodate any monetary policy". This implies that fiscal policy must ensure that the liquidity of the government is maintained for any monetary policy. Bernanke and Gertler (1995) suggest that, at least in the short-run, monetary policy can significantly influence the cause of the real economy. F or example,

MGT 7 Assignment Example | Topics and Well Written Essays - 250 words

MGT 7 - Assignment Example In this case the firm strives to drive down cost for every single production components ranging from labour costs to sourcing of raw materials. To accomplish cost leadership the firm usually requires production on large scale so as to capitalize on â€Å"economies of scale†. Production in large scale means that the company will naturally appeal to a wider aspect of the given market. Cost leadership is therefore a wide scope strategy. A business practicing cost leadership gains competitive advantage through reduction of production costs, thus increasing profit margins on every sale since the company trusts that its trademark can control a premium price. Secondly a firm can reduce production costs and pass on the cost savings to consumers hoping to boost sales as well as market share. Examples of companies practicing cost leadership include Wal-Mart Stores which implements everyday low prices so as to attract consumers. This idea of reduced prices is aimed at providing products at cheaper rate than competition on a frequent basis as opposed to relying to sales. Thus Walmart achieves this due to its efficient supply chain in addition to its large scale. The second example of a firm using cost leadership is IKEA which is a Swedish leader in furniture making. This company provides cheap but classy furniture. IKEA manages to offer low prices by sourcing its materials in countries with low-wage as well as providing extremely simple service level. The third company utilising cost leadership is Southwest Airlines. The airline managed to provide the lowest achievable prices by becoming more effective than conventional airlines. Southwest Airlines thus minimizes the time their planes use while on tarmac so as to have them flying, thus keeping profits up. In addition, they provide very little in terms of extra thrills to their customers, but instead trickle down the