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Basic Microeconomics ALL IN

SOURCE BY
JAYSON C. LUCENA

According to Mill's theorem, if private parties can bargain without cost over the allocation of
resources, then the private market will always solve the problem of externalities and allocate
resources efficiently.

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True
False 

Question 2
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The wage-labor based social security system is not welfare and definitely not a hand-out
from the government but a paid-for insurance system.

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True 
False

Question 3
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The theory of the market for corporate control was first put forward by ProfessorDavid
Macherof the Washington University Law School in 1965.

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True
False 

Question 4
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Manufacturers own the factors of production and consume all the goods and services that
the firms produce.

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True
False 

Question 5
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The characteristic by which goods are specified is that they have value that is purchasing
power over each other for which the list of goods is quite specific.

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True 
False

Question 6
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This Microeconomics may be used as a tool to aid in the decision making process.

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True 
False

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The only part of the theory of value which treats of the short period, in which the
technological stock of capital equipment is given, has any application.

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True
False 

Question 8
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Henry Wright defines social capital in terms of networks that can be used as instruments for
the production of goods and services.

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True
False 

Question 9
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Leninist doctrine conceived of the ________ as an organizational weapon for seizing power.

Select one:
a. Resources
b. Communist Party 
c. Income
d. Household

Question 10
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Economists say that supplementary goods areincrease in the price of one result in a
reduction in the demand for the other.

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True
False 

Question 11
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Walter Korpi argued that previously relatively backward nations in the ________ were rather
catching up with Sweden than Sweden lagging behind and that this was only to be
expected since higher growth rates are to be expected from countries that from the outset
are relatively poorer.

Select one:
a. Social exclusion
b. OECD 
c. Social Capital
d. Money

Question 12
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Babbage pioneered the use of utilitarian calculus to obtain judgments about the social
interest by aggregating the personal interests of different individuals in the form of their
respective utilities.
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True
False 

Question 13
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General equilibrium model explains how ________ used to produce a set of goods that will
result in the maximum social wealth.

Select one:
a. Welfare
b. Inputs 
c. Individual
d. Services

Question 14
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Pareto analyzed the process by which a social welfare function might be formulated,
arguing that a social welfare function is only a valid concept if it is derived from the
preferences of the individuals composing the society.

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True
False 
Question 15
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Adam Smith is the famous seventeenth century scientist and mathematician allegedly
became intrigued one day when he saw an apple fall from an apple tree.

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True
False 

Question 16
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________ is a positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce and so
contribute to maintaining the level of profits.

Select one:
a. Clarke-Groves mechanism
b. Grossmann and Hart
c. Interest 
d. Neo-classical economist

Question 17
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Egoistic Hedonism was defined by Sidgwick as the system that fixes as the reasonable
ultimate end of each individual's action his own greatest happiness.

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True 
False

Question 18
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The theory of consumer choice examines the tradeoffs that people face in their role as
Producers.

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True
False 

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Firms produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

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True 
False

Question 20
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The comparative advantage production of a good is if the individual can produce more than
the other individuals.

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True
False 

Question 21
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Oikonomiks is a studied human activities involved with "wealth-getting" which could be


unnatural as well as natural.

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True
False 

Question 22
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Partial equilibrium was first introduced by ________ (1844), in which he studied the value of a
large project.

Select one:
a. Dupuit 
b. Utilitarian
c. Social capital
d. Attributes

Question 23
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Adam Smith developed an analysis of the moral system called The Theory of Moral
Sentiments as well an economic system called The Wealth of Nations.

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True 
False

Question 24
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Walras and Pareto started from observed disequilibrium and through a process of
adjustments, they approached general equilibrium.

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True 
False

Question 25
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John Stuart Mill is an English philosopher who laid the foundation for British Utilitarian
microeconomics in his Introduction to the Principles of Morals and Legislation.

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True
False 

Question 26
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Entrepreneurial ability refers to the ability to organize ________ and bear risks.

Select one:
a. Social security
b. Production 
c. Good
d. Barter system

Question 27
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Rectangular-flow diagram represents the flows of goods and services between households
and firms.

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True
False 

Question 28
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Total utility of society was simply the sum of the individual utilities which focuses the
analysis on the ________.

Select one:
a. Homogeneity
b. Welfare
c. Transitionary
d. Individual 

Question 29
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Internal control mechanisms of corporate governance is mainly reflected in the market for
corporate control and especially in contention for control rights.

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True
False 

Question 30
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The classical economist thinks of a position of equilibrium as a position towards which an


economy is tending to move as time goes by.

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True
False 

Question 31
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________ suggested that a perfect market economy and a perfectly planned market economy
were equivalent.

Select one:
a. Samuelson Rule
b. Circular-flow diagram
c. Consumer choice
d. Enrico Barone 

Question 32
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Goods that are used to produce other goods or services are called economic resources and
are also known as inputs or factors of production.

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True 
False

Question 33
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Keynes had diagnosed the Great Depression of the 1930s as a failure of aggregate demand.

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True 
False
Question 34
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International market is taken into account where the demand for a product includes both
domestic and foreign demand.

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True 
False

Question 35
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Mechanisms of restraint in corporate control can be examined with regard to internal and
external mechanisms wherein internal control mechanisms are also known as the company's
internal governance structure.

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True 
False

Question 36
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People consume less than they desire because their spending is constrained or limited by
their ________.

Select one:
a. Economy
b. Income 
c. Formal organizations
d. Scarce resources

Question 37
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Cournot influence on the development of microeconomics is through the work of Leon


Walras.

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True 
False

Question 38
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Hall and Hitchsummarize what they found in their results that the intersection between the
official lie and the private truth has created unstable welfare systems.

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True
False 

Question 39
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An outcome is said to be efficient if the economy is getting all it can from the ________ it has
available.

Select one:
a. Formal organizations
b. Income
c. Scarce resources 
d. Economy

Question 40
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Lenism developed the party as an organization with the totalitarian vocation of abolishing
informal social networks and mobilizing the population into party-led formal organizations
covering every sphere of social life.

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True
False 

Question 41
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China transactions in enterprise control rights began in 1984 in such cities as Baoding and
Beijing.

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True
False 

Question 42
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The production possibilities frontier simplifies a complex ________ to highlight and clarifies
some basic ideas.

Select one:
a. Economy 
b. Scarce resources
c. Formal organizations
d. Income

Question 43
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Capital when it consists of un-invested finance is a sum of money and the net receipts of a
business are sums of money.

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True 
False

Question 44
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________ is a first best policy rule for public provision wherein it presupposes that the
government or social planner can collect revenue by using lump-sum taxes.

Select one:
a. Enrico Barone
b. Consumer choice
c. Circular-flow diagram
d. Samuelson Rule 

Question 45
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Opportunity cost is defined as the cost of not selecting the ________ alternative.

Select one:
a. Resources
b. Additional cost
c. Private truth
d. Next-best 

Question 46
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Dynamic change can also involve an increase in total welfare in the ________ insofar as
greater use of formal networks is more efficient and effective.

Select one:
a. Communist Party
b. Resources
c. Income
d. Household 

Question 47
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Social psychological theories of trust normally treat ________ as a diffuse attribute of an


individual--a person trusts others in many different situations.
Select one:
a. Dupuit
b. Attributes
c. Utilitarian
d. Social capital 

Question 48
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________ approach encourages the focus to be on individual behavior and the optimization
of the welfare of the individual.

Select one:
a. Dupuit
b. Social capital
c. Attributes
d. Utilitarian 

Question 49
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Zhu Yikun considered that claim to residue refers to residual rights of control with the
implication that those with claims regarding the ownership of residue are the contractual
controllers in respect of actions concerning the assets and have the final decision and also
that they bear operational profits and losses independently.

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True
False 

Question 50
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Gornen's theoryof social capital is that "horizontal" face-to-face integration spills upwards
into a nationally integrated network of hierarchical institutions of civil society to make
democracy work.

Select one:
True
False 

Finance is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce, and so
contribute to maintaining the level of profits.
FALSE

Investment is making current products available for the workers to consume in the
meantime.
FALSE

U.K. Federal provides control which means the power to exercise a controlling influence over
a company's operational management or general and specific policies or the activity of a
natural person directly or indirectly whether by voting, through one or more intermediaries,
a contract or other means.
FALSE
Socrates began his Republic with an economic interpretation of history where he begins by
seeking the meaning of justice.
FALSE

The regional self-interest means that individuals are assumed to select the alternative(s) that
they believe will make them happiest, given the information that they possess at the time of
the decision.
FALSE

A single largest social security system is the old age insurance for those over 20 years of
age.
FALSE

When Adam delved and Eve span, there were evidently a spade and a spindle already in
existence.
TRUE

Households and firms interact in two types of markets wherein in the markets for goods and
services, firms are buyers and households are sellers.
FALSE

Professor Michael Useemof the U.S. Corporate Governance Authority and the Wharton
School stated that the American enterprise system has been transformed from "de facto
capitalism" with de facto management control to "investor capitalism" where the investor
exercise effective constraints on managers.
FALSE

The law of supply is the inverse relationship exists between the price of a good and the
quantity demanded in a given time period.
FALSE

The law of supply is the inverse relationship exists between the price of a good and the
quantity demanded in a given time period.
TRUE
The law of supply is the inverse relationship exists between the price of a good and the
quantity demanded in a given time period.
FALSE

The absolute price commodity is a measure of how expensive a good is in terms of units of
some other good or service.
FALSE

Welfare independency remains a problem for those individuals who are forced by meager
economic circumstances to form their livelihood on receiving welfare.
FALSE

Self-interest people may donate their time to charitable organizations, give gifts to loved
ones, contribute to charities and engage in other similarly altruistic activities.
TRUE

Capital when it consists of un-invested finance is a sum of money and the net receipts of a
business are sums of money.

Select one:
True 

False

The category of land includes all natural resources and these natural resources include the
land itself, as well as any minerals, oil deposits, timber, or water that exists on or below the
ground.

Select one:
True 
False

Question 46
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Economic good is if the quantity of the good demanded exceeds the quantity supplied at a
zero price.

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True 
False

Question 47
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The only part of the theory of value which treats of the short period, in which the
technological stock of capital equipment is given, has any application.

Select one:
True
False 

Question 48
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Informal social networks are face-to-face relationships between a limited number of ________
who know each other and are bound together by kinship, friendship or propinquity.

Select one:
a. Homogeneity
b. Individuals 
c. Services
d. Inputs

There is information that no one in Sweden complain that those who have pension
insurance in a private company become dependent upon that company nor do that such
insurance create disincentives to work.

Select one:
True 
False

Question 43
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Economics is the study of how individuals and societies use limited ________ to satisfy
unlimited wants.

Select one:
a. Next-best
b. Resources 
c. Additional cost
d. Private truth

Circular-flowdiagram offers a simple way of organizing all the economic transactions that
occur between households and firms in the economy.

Select one:
True 
False

Keynes had diagnosed the Great Depression of the 1930s as a failure of aggregate demand.

Select one:
True 
False

Question 36
Correct
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Rectangular-flow diagram represents the flows of goods and services between households
and firms.

Select one:
True
False 

Question 37
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In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduceagency costs.

Select one:
True 
False

China transactions in enterprise control rights began in 1984 in such cities as Baoding and
Beijing.

Select one:
True
False 

Question 32
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Walras and Pareto started from observed disequilibrium and through a process of
adjustments, they approached general equilibrium.

Select one:
True 
False

Adam Smith and David Ricardo argued that similar benefits accrue from international
specialization and trade.

Select one:
True 
False

Question 25
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________ thinks of a position of equilibrium as a position towards which an economy is


tending to move as time goes by.

Select one:
a. Clarke-Groves mechanism
b. Neo-classical economist 
c. Grossmann and Hart
d. Interest

Question 26
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Micro-economic theories conventionally conceive of welfare as the outcome of individual


________, particularly income.

Select one:
a. Dupuit
b. Attributes 
c. Utilitarian
d. Social capital

Question 27
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Gornen's theoryof social capital is that "horizontal" face-to-face integration spills upwards
into a nationally integrated network of hierarchical institutions of civil society to make
democracy work.

Select one:
True
False 

Question 28
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________ provided a justification for and explanation of the activities of the rising merchant
class.

Select one:
a. Microeconomics
b. Mercantilism 
c. Economic theory
d. Law of demand

Question 29
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________ wrote that the definition of corporate controlis the authority to employ and dismiss
managers at the highest level and to determine their remuneration.

Select one:
a. External control mechanisms
b. Berle and Means
c. Henry G. Manne
d. Michael Jensen 

According to Mill's theorem, if private parties can bargain without cost over the allocation of
resources, then the private market will always solve the problem of externalities and allocate
resources efficiently.

Select one:
True

False 

________ are a necessary part of a modern society, which by definition requires impersonal
bureaucratic organizations of state and market that can routinely produce complex goods
such as automobiles and services such as university education.

Select one:
a. Economy
b. Formal organizations 
c. Scarce resources
d. Income

Question 10
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Marginal cost is defined as the ________ associated with a one-unit increase in the level of
the activity.

Select one:
a. Resources
b. Next-best
c. Additional cost 
d. Private truth

Question 11
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Firms produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

Select one:
True 
False

Question 12
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Social capital networks produce goods and ________ that are not a new phenomenon but
they are an inevitable part of every society, ancient or modern, high income or low income.

Select one:
a. Services 
b. Inputs
c. Welfare
d. Individual

Question 13
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In the welfare theory discussion, a portfolio of ________ is the best way to secure welfare
according to Russian statistic case.

Select one:
a. Communist Party
b. Resources 
c. Household
d. Income

Question 14
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Total utility of society was simply the sum of the individual utilities which focuses the
analysis on the ________.

Select one:
a. Homogeneity
b. Transitionary
c. Welfare
d. Individual 

Question 15
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There is a quantity which can be translated from one number to another by changing the
unit and this is calledequilibrium.

Select one:
True 
False

Question 16
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Pareto was the successor to Walras at the University of Lausanne whose name has been
associated with the basic criteria used as a measure of efficiency.

Select one:
True 
False

Question 17
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________ of corporate governance are mainly reflected in the market for corporate control
and especially in contention for control rights.

Select one:
a. Henry G. Manne
b. Berle and Means
c. Michael Jensen
d. External control mechanisms 

Question 18
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The Germans are often regarded as the first important contributors to Western culture.

Select one:
True
False 

Question 19
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Opportunity cost is one of the Ten Principles of Economics wherein the cost of something is
what you give up to get it such that one good as measured in terms of the other good.

Select one:
True 
False
Question 20
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________ is the inverse relationship exists between the price of a good and the quantity
demanded in a given time period.

Select one:
a. Microeconomics
b. Mercantilism
c. Law of demand 
d. Economic theory

________ is a positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce and so
contribute to maintaining the level of profits.

Select one:
a. Interest 
b. Neo-classical economist
c. Grossmann and Hart

d. Clarke-Groves mechanism
Generic social capital is the basis of most theories of ________, for a poor, uneducated or
blind person is expected to be excluded from productive networks across a wide range of
welfare goods and services.

Select one:
a. Social Capital
b. OECD
c. Social exclusion 
d. Money

Question 4
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Goods that are used to produce other goods or services are called economic resources and
are also known as inputs or factors of production.

Select one:
True 
False

Rectangular-flow diagram represents the flows of goods and services between households
and firms.

There is a quantity which can be translated from one number to another by changing the
unit and this is called ________.

Select one:
a. Physical stock
b. Equilibrium 
c. Neo-classical
d. Capital

Question 2
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_______ was substantially criticized if not undermined by the argument that interpersonal
comparisons of utility had no scientific basis.

Select one:
a. Utilitarian welfare economics 
b. Kenneth Arrow
c. Bentham
d. Keynes

Question 3
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The _______ theory came about in the latter half of the 19th century explicitly in the form of
Leon Walras' 1874 work "Elements of Pure Economics" and subsequently with the addition
of graphical representation in his 1892 paper "Geometrical Theory of the Determination of
Prices".

Select one:
a. Godel's proof
b. Walras and Pareto
c. Pareto
d. General equilibrium 

Question 4
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The _______ of a capitalist who has the machine built in his own workshops will expect to
receive, from sales of the final output which includes profit on the interest on the cost of
having the machine built reckoned over the period of construction.

Select one:
a. Capitalist
b. Profit 
c. Costs of production
d. Interest

Question 5
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_______ is an un-invested finance for a sum of money and the net receipts of a business are
sums of money.

Select one:
a. Neo-classical
b. Equilibrium
c. Capital 
d. Physical stock
Question 6
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_______ considers social welfare function, which although still problematic along positivist
grounds, provided a framework for ranking different social states on the basis of a
configuration or profile of individual preferences.

Select one:
a. New welfare economics
b. General equilibrium theory
c. Bergson/Samuelson 
d. Economic theory

Question 7
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_______ transactions in enterprise control rights began in 1984 in such cities as Baoding and
Wuhan.

Select one:
a. China 
b. Residual rights of control
c. Yang Xiaowei
d. Prosperous capitalist

Question 8
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_______ of corporate governance is mainly reflected in the market for corporate control and
especially in contention for control rights.

Select one:
a. Agency costs
b. China
c. Michael Useem
d. External control mechanisms 

Question 9
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_______ is the specific list of all the goods in existence at any moment including work-in-
progressing the pipe lines of production.

Select one:
a. Investment
b. Stock of capital 
c. Productiveness of capital
d. Saving

Question 10
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_______ succinctly defines corporate control as the power exercised over the company with
varying degrees of influence by shareholders or those with related benefits.

Select one:
a. Partnerships
b. U.S. Federal Securities Act
c. City of London Regulations
d. Zhu Yikun 

Question 11
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_______ analyzed the process by which a social welfare function might be formulated,
arguing that a social welfare function is only a valid concept if it is derived from the
preferences of the individuals composing the society.

Select one:
a. Utilitarian welfare economics
b. Bentham
c. Keynes
d. Kenneth Arrow 

Question 12
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_______ includes the cost of capital goods, and since they must be constructed before they
can be used, part of which is interest over the period of time between the moment when
work was done in constructing capital goods and the time when they are producing a
stream of output.

Select one:
a. Cost of capital 
b. Adam and Eve
c. Blast furnaces
d. Stock of wealth

Question 13
Correct
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The _______ and _______ refers to the phenomenon of the almost total lack of control rights
or lack of direct control rights over company management policy by shareholders in publicly
held corporations.

Select one:
a. Henry G. Manne
b. Mechanisms
c. Separation of ownership and control 
d. Decision management

Question 14
Correct
Mark 1.00 out of 1.00
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The theory of the market for corporate control was first put forward by Professor _______ of
the Washington University Law School in 1965.

Select one:
a. Separation of ownership and control
b. Henry G. Manne 
c. Mechanisms
d. Decision management

Question 15
Correct
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_______ and _______ started from observed disequilibrium and through a process of
adjustments, they approached general equilibrium.

Select one:
a. Walras and Pareto 
b. Pareto
c. General equilibrium
d. Godel's proof

Question 16
Correct
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Professor _______ of the U.S. Corporate Governance Authority and the Wharton School
stated that the American enterprise system has been transformed from "management
capitalism" with de facto management control to "investor capitalism" where the investor
exercise effective constraints on managers.

Select one:
a. Agency costs
b. External control mechanisms
c. Michael Useem 
d. China

Question 17
Correct
Mark 1.00 out of 1.00

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_______ continued to work on the possibility of the existence, stability, and uniqueness of
general equilibrium theory in increasingly complex formal mathematical models.

Select one:
a. Evolutionary-type reasoning
b. Rational-choice game
c. Vienna Colloquium 
d. Amartya Sen

Question 18
Correct
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_______ theory carried with it key foundational problems surrounding the very concept of
rationality in a game-theoretic setting.

Select one:
a. Amartya Sen
b. Rational-choice game 
c. Evolutionary-type reasoning
d. Vienna Colloquium

Question 19
Correct
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_______ pioneered the use of utilitarian calculus to obtain judgments about the social interest
by aggregating the personal interests of different individuals in the form of their respective
utilities.

Select one:
a. Keynes
b. Bentham 
c. Utilitarian welfare economics
d. Kenneth Arrow

Question 20
Correct
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The characteristic by which goods are specified and that they have value that is purchasing
power over each other wherein the list of goods is quite specific with so many actual
particular objects is called ________.

Select one:
a. Adam and Eve
b. Cost of capital
c. Blast furnaces 
d. Stock of wealth

Question 21
Correct
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_______ is the power to make decisions regarding the distribution of the residue produced
under a contract.

Select one:
a. Prosperous capitalist
b. Yang Xiaowei
c. China
d. Residual rights of control 

Question 22
Correct
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_______ is a type of reasoning that is amenable in principle to a multiplicity of player types


such as own-gain maximizes and those preferring equality.

Select one:
a. Evolutionary-type reasoning 
b. Rational-choice game
c. Vienna Colloquium
d. Amartya Sen

Question 23
Correct
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_______ economies are those where the rate of profit is falling in spite of rapid technical
progress and miserable ones are those where the rate of profit is high in spite of technical
stagnation.

Select one:
a. China
b. Yang Xiaowei
c. Prosperous capitalist 
d. Residual rights of control

Question 24
Correct
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It comes to employ a particular methodological outlook where theory was understood to


correspond with truth and was prior to the dissembling world of praxis called _______.

Select one:
a. Bergson/Samuelson
b. New welfare economics
c. General equilibrium theory
d. Economic theory 

Question 25
Correct
Mark 1.00 out of 1.00

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In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduce _______.

Select one:
a. U.S. Federal Securities Act
b. City of London Regulations
c. Zhu Yikun
d. Partnerships 

Question 26
Correct
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_______ used only one basic criterion of social improvement called the Pareto comparison.

Select one:
a. Economic theory
b. General equilibrium theory
c. New welfare economics 
d. Bergson/Samuelson

Question 27
Correct
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Question text

The theory of value treats the short period, in which the _______ of capital equipment is given
and it has many applications.

Select one:
a. Capital
b. Equilibrium
c. Physical stock 
d. Neo-classical

Question 28
Correct
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_______ held that the utilities of different commodities were not independent with some
commodities functioning as substitutes or complements for each other or the consumption
of a commodity affecting the utility of another commodity in some fashion.

Select one:
a. General equilibrium
b. Godel's proof
c. Pareto 
d. Walras and Pareto

Question 29
Correct
Mark 1.00 out of 1.00

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_______ of restraint in corporate control can be examined with regard to internal and external
mechanisms.

Select one:
a. Mechanisms 
b. Separation of ownership and control
c. Henry G. Manne
d. Decision management

Question 30
Correct
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The _______ determine supply price consist of wages and profits.

Select one:
a. Interest
b. Profit
c. Costs of production 
d. Capitalist

Question 31
Correct
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_______ includes the decision's initial proposal and its implementation after authorization
while decision control includes the examination and approval of the proposed decision and
supervision of its implementation.

Select one:
a. Decision management 
b. Separation of ownership and control
c. Henry G. Manne
d. Mechanisms

Question 32
Correct
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_______ provides control which means that the power to exercise a controlling influence over
a company's operational management and specific policies or the activity of a natural
person directly or indirectly whether by voting, through one or more intermediaries such as
a contract or other means.

Select one:
a. City of London Regulations
b. Partnerships
c. Zhu Yikun
d. U.S. Federal Securities Act 

Question 33
Correct
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The _______ economist thinks of a position of equilibrium as a position towards which an


economy is tending to move as time goes by.

Select one:
a. Equilibrium
b. Capital
c. Physical stock
d. Neo-classical 

Question 34
Correct
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A _______ buys a machine readymade pays a price for it which includes profit to the capitalist
who sells it.

Select one:
a. Profit
b. Capitalist 
c. Costs of production
d. Interest

Question 35
Correct
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_______ consists, in essence, in employing labor now in a way which will yield its fruits in the
future.

Select one:
a. Saving
b. Investment 
c. Productiveness of capital
d. Stock of capital

Question 36
Correct
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The _______ of the United Kingdom define control rights as the ownership or joint ownership
of 30% or more of the voting shares in a company whether or not the amount owned
constitutes the actual voting rights.

Select one:
a. U.S. Federal Securities Act
b. Zhu Yikun
c. City of London Regulations 
d. Partnerships

Question 37
Correct
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The process of accumulation consists in refraining from consuming current output in order
to add to the ________.

Select one:
a. Adam and Eve
b. Stock of wealth 
c. Blast furnaces
d. Cost of capital

Question 38
Correct
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_______ Company Law provides that companies can take two forms, namely limited liability
companies or joint stock limited companies.

Select one:
a. China 
b. External control mechanisms
c. Agency costs
d. Michael Useem

Question 39
Correct
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_______ considered that claim to residue refers to residual rights of control with the
implication that those with claims regarding the ownership of residue are the contractual
controllers in respect of actions concerning the assets and have the final decision and also
that they bear operational profits and losses independently.

Select one:
a. Residual rights of control
b. Yang Xiaowei 
c. Prosperous capitalist
d. China

Question 40
Correct
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When _______ and _______ span there were evidently a spade and a spindle already in
existence.

Select one:
a. Blast furnaces
b. Cost of capital
c. Adam and Eve 
d. Stock of wealth

Question 41
Correct
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_______ is the boundary of the analyticity of arithmetic which was not airtight and for the
Colloquium's work on general equilibrium theory wherein Carnap's invocation of ever richer
arithmetical languages was problematic and would prove to be prophetic at least with
regard to general equilibrium theory.

Select one:
a. Pareto
b. Godel's proof 
c. General equilibrium
d. Walras and Pareto

Question 42
Correct
Mark 2.00 out of 2.00
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Question text

Godel's proof is the boundary of the analyticity of arithmetic which was not airtight and for
the Colloquium's work on general equilibrium theory wherein Carnap's invocation of ever
richer arithmetical languages was problematic and would prove to be prophetic at least with
regard to ________.

Select one:
a. General equilibrium theory 
b. New welfare economics
c. Bergson/Samuelson
d. Economic theory

Question 43
Correct
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_______ had diagnosed the Great Depression of the 1930s as a failure of aggregate demand.

Select one:
a. Keynes 
b. Bentham
c. Kenneth Arrow
d. Utilitarian welfare economics

Question 44
Correct
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_______ is making current products available for the workers to consume in the meantime.

Select one:
a. Investment
b. Saving 
c. Stock of capital
d. Productiveness of capital

Question 45
Correct
Mark 1.00 out of 1.00

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Question text

In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduce _______.

Select one:
a. External control mechanisms
b. Michael Useem
c. China
d. Agency costs 

Question 46
Correct
Mark 1.00 out of 1.00
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Question text

_______ is characterize by a unit of labor that was expended at a certain time in the past is
more valuable today than a unit expended today, because its fruits are already ripe.

Select one:
a. Stock of capital
b. Productiveness of capital 
c. Saving
d. Investment

Question 47
Correct
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_______ is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce and so
contribute to maintaining the level of profits.

Select one:
a. Capitalist
b. Costs of production
c. Profit
d. Interest 

Question 48
Correct
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_______ is a pioneer and advocate of social choice theory and he attacked the notion of the
abstract individual subject displaying a rarefied form of social behavior integral to the
history of economic theory as too simplistic.

Select one:
a. Amartya Sen 
b. Vienna Colloquium
c. Evolutionary-type reasoning
d. Rational-choice game

The theory of ________ examines the tradeoffs that people face in their role as consumers.

Select one:
a. Circular-flow diagram
b. Enrico Barone
c. Samuelson Rule
d. Consumer choice 

Question 2
Correct
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Partial equilibrium was first introduced by ________ (1844), in which he studied the value of a
large project.

Select one:
a. Attributes
b. Social capital
c. Utilitarian
d. Dupuit 

Question 3
Correct
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The theory of the market for corporate control was first put forward by ________ of the
Washington University Law School in 1965.

Select one:
a. Berle and Means
b. External control mechanisms
c. Michael Jensen
d. Henry G. Manne 

Question 4
Correct
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Question text

Godel's proof is the boundary of the analyticity of arithmetic was not airtight and for the
Colloquium's work on general equilibrium theory, Carnap's invocation of ever richer
arithmetical languages was problematic and would prove to be prophetic at least with
regard to general equilibrium theory.

Select one:
True 
False

Question 5
Correct
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Scarcity implies the existence of tradeoffs wherein these tradeoffs can be illustrated quite
nicely by a production possibilities frontier.

Select one:
True 
False

Question 6
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Monetary companies own the factors of production and consume all the goods and services
that the firms produce.

Select one:
True
False 

Question 7
Correct
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________ started from a pragmatic perspective, defining corporate control as the actual right
to choose the members of the board of directors of a company or the majority of the
members whether through the exercise of legal powers or by bringing pressure to bear.

Select one:
a. External control mechanisms
b. Henry G. Manne
c. Berle and Means 
d. Michael Jensen

Question 8
Correct
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Mechanisms of restraint in corporate control can be examined with regard to internal and
external mechanisms wherein internal control mechanisms are also known as the company's
internal governance structure.

Select one:
True 
False

Question 9
Correct
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Cournot influence on the development of microeconomics is through the work of Leon


Walras.

Select one:
True 
False

Question 10
Correct
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The Welfare Capital survey found that in Russia, four-fifths to nine-tenths do not belong to
any voluntary association.

Select one:
True
False 

Question 11
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John Stuart Mill is an English philosopher who laid the foundation for British Utilitarian
microeconomics in his Introduction to the Principles of Morals and Legislation.

Select one:
True
False 

Question 12
Correct
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Bureaucratic organizations are predictably expected to deliver goods and services to


individuals as citizens and customers.

Select one:
True 
False

Question 13
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Egoistic Hedonism was defined by Sidgwick as the system that fixes as the reasonable
ultimate end of each individual's action his own greatest happiness.

Select one:
True 
False

Question 14
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Lenism developed the party as an organization with the totalitarian vocation of abolishing
informal social networks and mobilizing the population into party-led formal organizations
covering every sphere of social life.

Select one:
True
False 

Question 15
Correct
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The production possibilities frontier simplifies a complex ________ to highlight and clarifies
some basic ideas.

Select one:
a. Economy 
b. Income
c. Formal organizations
d. Scarce resources

Question 16
Correct
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Question text

Hall and Hitchsummarize what they found in their results that the intersection between the
official lie and the private truth has created unstable welfare systems.

Select one:
True
False 

Question 17
Correct
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Anoutcome is said to be efficient if the economy is getting all it can from the scarce
resources it has available.

Select one:
True 
False

Question 18
Correct
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The wage-labor based social security system is not welfare and definitely not a hand-out
from the government but a paid-for insurance system.

Select one:
True 
False
Question 19
Correct
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Question text

Stefan Folster and Fredrik Bergstrom summarize their results that the intersection between
the official lie and the ________ has created unstable welfare systems.

Select one:
a. Next-best
b. Resources
c. Additional cost
d. Private truth 

Question 20
Correct
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Total utility of society was simply the sum of the individual utilities which focuses the
analysis on the ________.

Select one:
a. Inputs
b. Welfare
c. Services
d. Individual 

Question 21
Correct
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The characteristic by which goods are specified is that they have value that is purchasing
power over each other for which the list of goods is quite specific.

Select one:
True 
False

Question 22
Correct
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Question text

________ is the study of decisions, relationships and behavioral patterns of individuals,


families, organizations, industries and markets.

Select one:
a. Mercantilism
b. Economic theory
c. Microeconomics 
d. Law of demand

Question 23
Correct
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Stock of capital as the specific list of all the goods in existence at any moment including
work-in-progressing the pipe lines of production.

Select one:
True 
False

Question 24
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Households and firms interact in two types of markets wherein in the markets for goods and
services, firms are buyers and households are sellers.

Select one:
True
False 

Question 25
Correct
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Residual rights of control are the power to make decisions regarding the distribution of the
residue produced under the contract.

Select one:
True 
False
Question 26
Correct
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________ is not a static body of truths, rather, it is an expression of a perspective about


economic activities during a particular historical period.

Select one:
a. Economic theory 
b. Law of demand
c. Mercantilism
d. Microeconomics

Question 27
Correct
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Question text

The comparative advantage production of a good is if the individual can produce more than
the other individuals.

Select one:
True
False 

Question 28
Correct
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Question text

Saving consists, in essence, in employing labor now in a way which will yield its fruits in the
future.

Select one:
True
False 

Question 29
Correct
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The main system of protection from income-loss and/or absence from the labor market in
Sweden remains the overall social security system.

Select one:
True 
False

Question 30
Correct
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Question text

The separation of ownership and control refers to the phenomenon of the almost total lack
of control rights or lack of direct control rights over company management policy by
shareholders in privately held corporations.

Select one:
True
False 

Question 31
Correct
Mark 1.00 out of 1.00

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Internal control mechanisms of corporate governance is mainly reflected in the market for
corporate control and especially in contention for control rights.

Select one:
True
False 

Question 32
Correct
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This monetary economy individuals trade goods or services for money and then use this
money to buy the goods or services that they wish to acquire.

Select one:
True 
False

Question 33
Correct
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The theory of the market for corporate control was first put forward by ProfessorDavid
Macherof the Washington University Law School in 1965.

Select one:
True
False 

Question 34
Correct
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Chrematistiks was an analysis of how decisions were made regarding the management of
resources.

Select one:
True
False 

Question 35
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Pareto analyzed the process by which a social welfare function might be formulated,
arguing that a social welfare function is only a valid concept if it is derived from the
preferences of the individuals composing the society.

Select one:
True
False 

Question 36
Correct
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Jeremy Bentham draws an analogy between the Principles of Maximum Energy and the
Principles of Greatest Happiness.

Select one:
True
False 

Question 37
Correct
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The classical economist thinks of a position of equilibrium as a position towards which an


economy is tending to move as time goes by.

Select one:
True
False 
Question 38
Correct
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This Microeconomics may be used as a tool to aid in the decision making process.

Select one:
True 
False

Question 39
Correct
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Question text

An outcome is said to be efficient if the economy is getting all it can from the ________ it has
available.

Select one:
a. Economy
b. Income
c. Scarce resources 
d. Formal organizations

Question 40
Correct
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The General Equilibriumtheory came about in the latter half of the 19th century explicitly in
the form of Leon Walras' 1874 work, Elements of Pure Economics, and subsequently with
the addition of graphical representation in his 1892 paper "Geometrical Theory of the
Determination of Prices".

Select one:
True 
False

Question 41
Incorrect
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Education is a human capital determinant of individual ________ either directly or indirectly.

Select one:
a. Welfare
Question 42

Correct
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Swedish right-wing politician and think-tank activist Ron Vane exposes clearly his
arguments in his pamphlet Svaghetens moral.

Select one:
True
False 

Question 43
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________ represents the flows of goods and services between households and firms.

Select one:
a. Consumer choice
b. Samuelson Rule
c. Enrico Barone
d. Circular-flow diagram 

Question 44
Correct
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Entrepreneurial ability refers to the ability to organize ________ and bear risks.

Select one:
a. Production 
b. Good
c. Social security
d. Barter system
Question 45
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Anders Isaksson has been given ample room in the columns to put forward the case
wherein he argues that income ________ is an ever-increasing burden on the welfare state.

Select one:
a. Production
b. Social security 
c. Good
d. Barter system

Question 46
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Dynamic change can also involve an increase in total welfare in the ________ insofar as
greater use of formal networks is more efficient and effective.

Select one:
a. Resources
b. Household 
c. Income
d. Communist Party

Question 47
Correct
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Adam Smith developed an analysis of the moral system called The Theory of Moral
Sentiments as well an economic system called The Wealth of Nations.

Select one:
True 
False

Question 48
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________ theory exemplifies how far contemporary neoclassical economics has come from a
time when rationally maximizing behavior on the part of individuals was thought to be
necessary for a coherent economic model.

Select one:
a. Henry G. Manne
b. Traditional welfare economics
c. External control mechanisms
d. Evolutionary game 

Question 49
Correct
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________ is a market system in which goods or services is traded directly for other goods or
services.

Select one:
a. Social security
b. Production
c. Good
d. Barter system 

Question 50
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Straight system is a market system in which goods or services are traded directly for other
goods or services.

Select one:
True
False 

Arthur Montblancis the best known of the early contributors to French rationalist
microeconomics wherein he perceives the quantity demanded as a continuous function of
the price.

Select one:
True
False 

Question 2
Correct
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Households and firms interact in two types of markets wherein in the markets for goods and
services, firms are buyers and households are sellers.

Select one:
True
False 

Question 3
Correct
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Question text

The comparative advantage production of a good is if the individual can produce more than
the other individuals.

Select one:
True
False 

Question 4
Correct
Mark 1.00 out of 1.00

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Question text

________ of corporate governance are mainly reflected in the market for corporate control
and especially in contention for control rights.

Select one:
a. Michael Jensen
b. Henry G. Manne
c. External control mechanisms 
d. Berle and Means

Question 5
Correct
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________ is a first best policy rule for public provision wherein it presupposes that the
government or social planner can collect revenue by using lump-sum taxes.

Select one:
a. Consumer choice
b. Samuelson Rule 
c. Enrico Barone
d. Circular-flow diagram

Question 6
Correct
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________ represents the flows of goods and services between households and firms.

Select one:
a. Circular-flow diagram 
b. Consumer choice
c. Enrico Barone
d. Samuelson Rule

Question 7
Correct
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Internal control mechanisms of corporate governance is mainly reflected in the market for
corporate control and especially in contention for control rights.

Select one:
True
False 

Question 8
Correct
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Absolute advantage is the production of a ________ if the individual can produce more than
the other individuals.

Select one:
a. Production
b. Social security
c. Barter system
d. Good 

Question 9
Correct
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This local market demand for a product includes both domestic and foreign demand.

Select one:
True
False 

Question 10
Correct
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The process of accumulation consists in refraining from consuming current output in order
to add to thestock of wealth.

Select one:
True 
False

Question 11
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Holistic characterizations of cultures and societies as trusting as well as thick or thin in
network structures are only meaningful insofar as there is a substantial amount of ________
within a society or at least one perspective is hegemonic.

Select one:
a. Transitionary
b. Homogeneity 
c. Welfare
d. Individual

Question 12
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Partnershipsare the result of the extension of proprietorial enterprises wherein if proprietors


establish a partnership by means of a contract they become partners.

Select one:
True 
False

Question 13
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Entrepreneurial ability refers to the ability to organize ________ and bear risks.

Select one:
a. Barter system
b. Good
c. Production 
d. Social security

Question 14
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Economist also uses models to learn about the world but instead of being made of plastic,
they are most often composed of diagrams and equations.

Select one:
True 
False

Question 15
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Generic social capital is the basis of most theories of ________, for a poor, uneducated or
blind person is expected to be excluded from productive networks across a wide range of
welfare goods and services.

Select one:
a. Social exclusion 
b. Social Capital
c. Money
d. OECD
Question 16
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John Stuart Mill can be regarded as a ________ writer, he connects the Classical economists
and Utilitarianism to the development of market oriented microeconomics.

Select one:
a. Transitionary 
b. Individual
c. Homogeneity
d. Welfare

Question 17
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Henry Wright defines social capital in terms of networks that can be used as instruments for
the production of goods and services.

Select one:
True
False 

Question 18
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An outcome is said to be efficient if the economy is getting all it can from the ________ it has
available.

Select one:
a. Economy
b. Income
c. Formal organizations
d. Scarce resources 

Question 19
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The costs of production which determine supply price consist of wages and profits.

Select one:
True 
False

Question 20
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The only part of the theory of value which treats of the short period, in which the
technological stock of capital equipment is given, has any application.

Select one:
True
False 

Question 21
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Firms produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

Select one:
True 
False

Question 22
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Anders Isaksson has been given ample room in the columns to put forward the case
wherein he argues that income ________ is an ever-increasing burden on the welfare state.

Select one:
a. Good
b. Barter system
c. Production
d. Social security 

Question 23
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________ was developed by utilitarian economists such as Marshall and Pigou, taking
inspiration from their predecessor Jeremy Bentham.

Select one:
a. Traditional welfare economics 
b. Henry G. Manne
c. Evolutionary game
d. External control mechanisms

Question 24
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Egoistic Hedonism was defined by Sidgwick as the system that fixes as the reasonable
ultimate end of each individual's action his own greatest happiness.

Select one:
True 
False

Question 25
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Pareto analyzed the process by which a social welfare function might be formulated,
arguing that a social welfare function is only a valid concept if it is derived from the
preferences of the individuals composing the society.

Select one:
True
False 

Question 26
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________ are a necessary part of a modern society, which by definition requires impersonal
bureaucratic organizations of state and market that can routinely produce complex goods
such as automobiles and services such as university education.

Select one:
a. Economy
b. Formal organizations 
c. Scarce resources
d. Income

Question 27
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Dynamic change can also involve an increase in total welfare in the ________ insofar as
greater use of formal networks is more efficient and effective.

Select one:
a. Income
b. Resources
c. Household 
d. Communist Party

Question 28
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________ is a system of side payments that was introduced to the individual alongside the
willingness to pay.

Select one:
a. Neo-classical economist
b. Clarke-Groves mechanism 
c. Interest
d. Grossmann and Hart

Question 29
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Chrematistiks was an analysis of how decisions were made regarding the management of
resources.

Select one:
True
False 

Question 30
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The main system of protection from income-loss and/or absence from the labor market in
Sweden remains the overall social security system.

Select one:
True 
False

Question 31
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Informal social networks are face-to-face relationships between a limited number of ________
who know each other and are bound together by kinship, friendship or propinquity.

Select one:
a. Homogeneity
b. Individuals 
c. Services
d. Inputs

Question 32
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In the theory of the market for corporate control, the conduct of takeovers by companies in
that market and the accompanying threat of takeover are external control mechanisms,
which can reduceagency costs.

Select one:
True 
False

Question 33
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Babbage pioneered the use of utilitarian calculus to obtain judgments about the social
interest by aggregating the personal interests of different individuals in the form of their
respective utilities.

Select one:
True
False 

Question 34
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Rectangular-flow diagram represents the flows of goods and services between households
and firms.

Select one:
True
False 

Question 35
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Decision management includes the decision's initial proposal and its implementation after
authorization while decision control includes the examination and approval of the proposed
decision and supervision of its implementation.

Select one:
True 
False

Question 36
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International market is taken into account where the demand for a product includes both
domestic and foreign demand.

Select one:
True 
False

Question 37
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Economists say that supplementary goods areincrease in the price of one result in a
reduction in the demand for the other.

Select one:
True
False 

Question 38
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The theory of the market for corporate control was first put forward by ________ of the
Washington University Law School in 1965.

Select one:
a. External control mechanisms
b. Berle and Means
c. Michael Jensen
d. Henry G. Manne 

Question 39
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Investment is making current products available for the workers to consume in the
meantime.

Select one:
True
False 

Question 40
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The regional self-interest means that individuals are assumed to select the alternative(s) that
they believe will make them happiest, given the information that they possess at the time of
the decision.

Select one:
True
False 

Question 41
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According to Mill's theorem, if private parties can bargain without cost over the allocation of
resources, then the private market will always solve the problem of externalities and allocate
resources efficiently.

Select one:
True
False 

Question 42
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________ wrote that the definition of corporate controlis the authority to employ and dismiss
managers at the highest level and to determine their remuneration.

Select one:
a. Berle and Means
b. External control mechanisms
c. Henry G. Manne
d. Michael Jensen 

Question 43
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Stefan Folster and Fredrik Bergstrom summarize their results that the intersection between
the official lie and the ________ has created unstable welfare systems.

Select one:
a. Additional cost
b. Next-best
c. Private truth 
d. Resources

Question 44
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Economics is the study of how individuals and societies use limited ________ to satisfy
unlimited wants.

Select one:
a. Private truth
b. Additional cost
c. Next-best
d. Resources 

Question 45
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Monetary economies are individuals trade goods or services for ________ and then use this
money to buy the goods or services that they wish to acquire.

Select one:
a. OECD
b. Social exclusion
c. Social Capital
d. Money 

Question 46
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Welfare independency remains a problem for those individuals who are forced by meager
economic circumstances to form their livelihood on receiving welfare.

Select one:
True
False 

Question 47
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Keynes had diagnosed the Great Depression of the 1930s as a failure of aggregate demand.

Select one:
True 
False

Question 48
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Education is a human capital determinant of individual ________ either directly or indirectly.

Select one:
a. Welfare 
b. Transitionary
c. Homogeneity
d. Individual

Question 49
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Social capital networks produce goods and ________ that are not a new phenomenon but
they are an inevitable part of every society, ancient or modern, high income or low income.

Select one:
a. Welfare
b. Services 
c. Individual
d. Inputs

Question 50
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Economic good is if the quantity of the good demanded exceeds the quantity supplied at a
zero price.

Select one:
True 
False

This individual trade goods or services for money and then use this money to buy
the goods or services that they wish to acquire.

d. Monetary economy

It refers to the ability to organize production and bear risks.

b. Entrepreneurial ability

Goods that are used to produce other goods or services are called economic growth
and are also known as inputs or factors of production.

False

The category of "land" includes all natural resources wherein these natural
resources include the land itself, as well as any minerals, oil deposits, timber, or
water that exists on or below the ground.

True
These are markets that demand for a product includes both domestic and foreign
demand.

c. International markets

This is the rate at which the currency of one country is converted into the currency
of another country.

b. Exchange rate

Individuals are assumed to select the alternative(s) that they believe will make
them happiest, given the information that they possess at the time of the decision.

True

Economic good is if the quantity of the good demanded exceeds the quantity
supplied at a zero price.

True

This is the inverse relationship exists between the price of a good and the quantity
demanded in a given time period.

d. Law of demand

This is the production of a good if the individual can produce the good at the
lowest opportunity cost.

b. Comparative advantage

Stocks, bonds, and other financial assets are examples of capital/ resources.

False

Self-interested people may donate their time to charitable organizations, give gifts
to loved ones, contribute to charities and engage in other similarly altruistic
activities.

True

This is the production of a good if the individual can produce more than the other
individuals.
b. Absolute advantage.

The category of "land" includes all natural resources wherein these natural
resources include the land itself, as well as any minerals, oil deposits, timber, or
water that exists on or below the ground.

True

Goods that are used to produce other goods or services are called economic growth
and are also known as inputs or factors of production.

False

They argued that similar benefits accrue from international specialization and
trade.

d. Adam Smith and David Ricardo

This is a market system in which goods or services are traded directly for other
goods or services.

d. Barter system

This studied human activities involved with "wealth-getting" which could be


unnatural as well as natural.

b. Chrematistiks

He began his Republic with an economic interpretation of history wherein he


begins by seeking the meaning of justice.

b. Plato

This may be used as a tool to aid in the decision making process.

c. Microeconomics

It evaluates the current state of our world and to speculate on ways that it might be
improved; it is an important aspect of our education.

d. Economics
This was an analysis of how decisions were made regarding the management of
resources.

b. Oikonomiks

He was the successor to Walras at the University of Lausanne whose name has
been associated with the basic criteria used as a measure of efficiency.

a. Pareto

This was defined by Sidgwick as the system that fixes as the reasonable ultimate
end of each individual's action his own greatest happiness.

a. Egoistic Hedonism

He is largely responsible for the simplification of Bentham's utilitarian philosophy


as is has come to be used as a foundation for mainstream microeconomics.

a. Jevons

They are often regarded as the first important contributors to Western culture.

b. Greeks

He draws an analogy between the Principles of Maximum Energy and the


Principles of Greatest Happiness.

c. Francis Ysidro Edgeworth

This approach encourages the focus to be on individual behavior and the


optimization of the welfare of the individual.

a. Utilitarian approach

He developed an analysis of the moral system (The Theory of Moral Sentiments),


then an economic system (The Wealth of Nations).

c. Adam Smith

His influence on the development of microeconomics is through the work of Leon


Walras.
c. Cournot

He is an English philosopher who laid the foundation for British Utilitarian


microeconomics in his Introduction to the Principles of Morals and Legislation.

a. Jeremy Bentham

He is the famous seventeenth century scientist and mathematician, allegedly


became intrigued one day when he saw an apple fall from an apple tree.

d. Isaac Newton

_______ was defined by Sidgwick as the system that fixes as the reasonable
ultimate end of each individual's action his own greatest happiness.

a. Egoistic Hedonism

This diagram offers a simple way of organizing all the economic transactions that
occur between households and firms in the economy.

d. Circular-flow diagram

Households and firms interact in two types of markets. In the markets for goods
and services, _______ are buyers and _______ are sellers.

b. Households, firms

This _______ demand for a product includes both domestic and foreign demand.

b. International markets

_______ is an English philosopher, laid the foundation for British Utilitarian


microeconomics in his Introduction to the Principles of Morals and Legislation.

c. Jeremy Bentham

It evaluates the current state of our world and to speculate on ways that it might be
improved; it is an important aspect of our education.

a. Economics

_______ is if the quantity of the good demanded exceeds the quantity supplied at a
zero price.

a. Economic good

This is the inverse relationship exists between the price of a good and the quantity
demanded in a given time period, ceteris paribus.

b. Law of demand

_______ influence on the development of microeconomics is through the work of


Leon Walras.

b. Cournot

This is defined as the additional cost associated with a one-unit increase in the
level of the activity.

c. Marginal cost

Economists say that these goods are the increase in the price of one result in a
reduction in the demand for the other.

d. Complementary goods

_______ produce goods and services using inputs, such as labor, land, and capital
(buildings and machines).

b. Firms

_______ people may donate their time to charitable organizations, give gifts to
loved ones, contribute to charities and engage in other similarly altruistic activities.

c. Self-interested

According to him, if private parties can bargain without cost over the allocation of
resources, then the private market will always solve the problem of externalities
and allocate resources efficiently.

b. Coase

This is when making choices wherein this means that individuals are assumed to
select the alternative(s) that they believe will make them happiest, given the
information that they possess at the time of the decision.

d. Rational self-interest

_______ was an analysis of how decisions were made regarding the management
of resources.

c. Oikonomiks

An _______ is said to be efficient if the economy is getting all it can from the
scarce resources it has available.

a. Outcome

In these markets, households provide firms the inputs that the firms use to _______
and _______.

d. Produce goods and services

Another of the Ten Principles of Economics is that the cost of something is what
you give up to get it, one good as measured in terms of the other good.

d. Opportunity cost

_______ and _______ argued that similar benefits accrue from international
specialization and trade.

d. Adam Smith and David Ricardo

_______ was the successor to Walras at the University of Lausanne whose name
has been associated with the basic criteria used as a measure of efficiency.

d. Pareto

_______ developed an analysis of the moral system called The Theory of Moral
Sentiments, then an economic system called The Wealth of Nations.

c. Adam Smith

_______ began his Republic with an economic interpretation of history wherein he


begins by seeking the meaning of justice.
d. Plato

Stocks, bonds, and other financial assets are examples of _______.

a. Capital/ resources

_______ refers to the ability to organize production and bear risks.

c. Entrepreneurial ability

They own the factors of production and consume all the goods and services that the
firms produce.

c. Households

This implies the existence of tradeoffs wherein these tradeoffs can be illustrated
quite nicely by a production possibilities frontier.

d. Scarcity

This _______ may be used as a tool to aid in the decision making process.

d. Microeconomics

_______ draws an analogy between the Principles of Maximum Energy and the
Principles of Greatest Happiness.

b. Francis Ysidro Edgeworth

The _______ are often regarded as the first important contributors to Western
culture.

b. Greeks

The theory of consumer choice examines the tradeoffs that people face in their role
as _______.

b. Consumers

They produce goods and services using inputs, such as labor, land, and capital
(buildings and machines).

c. Firms
This is a measurement of how expensive a good is in terms of units of some other
good or service.

b. Relative price

This _______ approach encourages the focus to be on individual behavior and the
optimization of the welfare of the individual.

c. Utilitarian

_______ is the best known of the early contributors to French rationalist


microeconomics wherein he perceives the quantity demanded as a continuous
function of the price.

b. Augustin Cournot

This a graph that shows the various combinations of outputthat the economy can
possibly produce given the available factors of production and the available
production technology those firms can use to turn these factors into output.

a. Production possibilities frontier

Goods that are used to produce other goods or services are called _______ and are
also known as inputs or factors of production.

a. Economics Resources

_______ was an analysis of how decisions were made regarding the management
of resources.

d. Oikonomiks

Economists say that these goods are the increase in the price of one result in a
reduction in the demand for the other.

d. Complementary goods

This is defined as the additional cost associated with a one-unit increase in the
level of the activity.

b. Marginal cost
_______ influence on the development of microeconomics is through the work of
Leon Walras.

a. Cournot

Households and firms interact in two types of markets. In the markets for goods
and services, _______ are buyers and _______ are sellers.

c. Households, firms

This is the relationship that exists between the price of a good and the quantity
supplied in a given time period.

a. Supply

These are taken into account that includes the demand for a product both domestic
and foreign demand.

a. International markets

_______ also use models to learn about the world, but instead of being made of
plastic, they are most often composed of diagrams and equations.

b. Economists

The category of _______ includes all natural resources and these natural resources
include the land itself, as well as any minerals, oil deposits, timber, or water that
exists on or below the ground.

c. Land

_______ is a market system in which goods or services are traded directly for other
goods or services.

b. Barter system

_______ is the production of a good if the individual can produce the good at the
lowest opportunity cost.

c. Comparative advantage

This _______ is individual that trade goods or services for money and then use this
money to buy the goods or services that they wish to acquire.

a. Monetary economy

_______ is largely responsible for the simplification of Bentham's utilitarian


philosophy as is has come to be used as a foundation for mainstream
microeconomics.

b. Jevons

_______ is a studied human activities involved with "wealth-getting" which could


be unnatural as well as natural.

a. Chrematistiks

This diagram represents the flows of goods and services between households and
firms.

a. Circular-flow diagram

This is when capital equipment is given only part of the theory of value which
treats of the short period.
a. Physical stock 
b. Interest
c. Capital
d. Neo-classical

It determines supply price consist of wages and profits.


Select one:
a. Productiveness of capital
b. Capitalist
c. Costs of production 
d. Interest
Question 2
This is characterize when a unit of labor that was expended at a certain time in
the past is more valuable today than a unit expended today, because its fruits are
already ripe.
Select one:
a. Productiveness of capital 
b. Interest
c. Capitalist
d. Costs of production
They are the one who buys a machine readymade pays a price for it which
includes profit to the capitalist who sells it.

a. Productiveness of capital
b. Capitalist 
c. Interest
d. Costs of production
This kind of economist thinks of a position of equilibrium as a position towards
which an economy is tending to move as time goes by.
Select one:
a. Neo-classical 
b. Physical stock
c. Capital
d. Interest
This is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment
scarce, and so contribute to maintaining the level of profits.
a. Neo-classical
b. Interest 
c. Capital
d. Physical stock

They span that there were evidently a spade and a spindle already in existence.
Select one:
a. Adam delved and Eve 
b. Unit of labor
c. Investment
d. Saving
This is a process of accumulation consists in refraining from consuming current
output.
Select one:
a. Cost of capital
b. Equilibrium
c. Stock of wealth 
d. Blast furnaces
Question 10
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This is positive because profits are positive though at the same time the cost and
difficulty of obtaining finance play a part in keeping productive equipment scarce,
and so contribute to maintaining the level of profits.
Select one:
a. Neo-classical
b. Interest 
c. Capital
d. Physical stock
In China, transactions in enterprise control rights began in 1984 in such cities as
Baoding and Wuhan.
Select one:
True 
False
Question 2
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Yin Zhaoliang succinctly defines corporate control as the power exercised over the
company with varying degrees of influence by shareholders or those with related
benefits.
Select one:
True
False 
Question 3
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Decision management includes the decision's initial proposal and its
implementation after authorization while decision control includes the examination
and approval of the proposed decision and supervision of its implementation.
Select one:
True 
False
Question 4
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U.S. Federal Securities Act provides control which means the power to exercise a
controlling influence over a company's operational management or general and
specific policies or the activity of a natural person directly or indirectly whether by
voting a contract or other means.
Select one:
True 
False
Question 5
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Internal control mechanisms of corporate governance are mainly reflected in the
market for corporate control and especially in contention for control rights.
Select one:
True
False 
Question 6
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Professor Michael Jensen of the U.S. Corporate Governance Authority and the
Wharton School stated that the American enterprise system has been transformed
from "management capitalism" with de facto management control to "investor
capitalism" where the investor exercise effective constraints on managers.
Select one:
True
False 
Question 7
Correct
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Partnerships are the result of the extension of proprietorial enterprises wherein if
proprietors establish a partnership by means of a contract they become partners.
Select one:
True 
False
Question 8
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Mechanisms of restraint in corporate control can be examined with regard to
internal and external mechanisms. Internal control mechanisms are also known as
the company's internal governance structure.
Select one:
True 
False
Liu Xiaoxuan considered that claim to residue refers to residual rights of control
with the implication that those with claims regarding the ownership of residue are
the contractual controllers in respect of actions concerning the assets and have the
final decision and also that they bear operational profits and losses independently.
Select one:
True 
False
Question 10
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Commercial rights of control are the power to make decisions regarding the
distribution of the residue produced under the contract.
Select one:
True 
False

The separation of ownership and control refers to the phenomenon of the almost
total lack of control rights or lack of direct control rights over company
management policy by shareholders in publicly held corporations.
Select one:
True 
False
Question 2
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In the theory of the market for corporate control, the conduct of takeovers by
companies in that market and the accompanying threat of takeover are external
control mechanisms, which can reduce agency costs.
Select one:
True 
False
Question 3
Correct
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India's Company Law provides that companies can take two forms, namely limited
liability companies or joint stock limited companies.
Select one:
True
False 
Question 4
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The City of London Regulations of the United Kingdom define control rights as
the ownership or joint ownership of 30% or more of the voting shares in a
company whether or not the amount owned constitutes the actual voting rights.
Select one:
True 
False
Question 5
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The theory of the market for corporate control was first put forward by Professor
Henry G. See of the Washington University Law School in 1965.
Select one:
True
False 
His idea of maximizing utility of the maximum number of people typically
involves one maximum too many to be feasible.
Select one:
a. Vilfredo Pareto
b. Pigou
c. Jeremy Bentham 
d. Manuel d'Economie Politique
Question 2
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Pareto expressed it in the second edition when he proposed that welfare increases if
some people gain and nobody loses.
Select one:
a. Pigou
b. Jeremy Bentham
c. Vilfredo Pareto
d. Manuel d'Economie Politique 
Question 3
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He suggested that a perfect market economy and a perfectly planned market
economy were equivalent.
Select one:
a. Clarke-Groves Mechanism
b. Enrico Barone 
c. Partial equilibrium
d. Samuelson Rule
Question 4
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They are the one who founded the modern utilitarian framework in Economics.
Select one:
a. Jules Dupuit and Heinrich Gossen 
b. Adam Smith
c. Richard Cantillon
d. Leon Walras
Question 5
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He introduced the full-fledged general equilibrium system based on the
fundamental principles of utility maximization and profit maximization.
Select one:
a. Leon Walras 
b. Richard Cantillon
c. Jules Dupuit and Heinrich Gossen
d. Adam Smith
Question 6
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He took the distributional issue quite a bit further when he made two key
contributions to existing theory.
Select one:
a. Vilfredo Pareto 
b. Jeremy Bentham
c. Manuel d'Economie Politique
d. Pigou
They called these taxes the welfare optimizing or improving taxes under
externalities.
Select one:
a. Partial equilibrium
b. Pigovian taxes 
c. Abba P. Lerner
d. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare
Economics
Question 9
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This version was first introduced by Dupuit (1844), in which he studied the value
of a large project.
Select one:
a. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare
Economics
b. Abba P. Lerner
c. Partial equilibrium 
d. Pigovian taxes
This result has tried to modify the axioms to resolve the conflict between
individual and social orderings but no fully satisfactory solution has been found.
Select one:
a. Abba P. Lerner
b. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare
Economics 
c. Partial equilibrium
d. Pigovian taxes
Question 2
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He discussed how a judicious government can increase welfare wherein the full-
fledged version of the modern welfare theory was fleshed out in The Economics of
Welfare.
Select one:
a. Pigou 
b. Vilfredo Pareto
c. Jeremy Bentham
d. Manuel d'Economie Politique
Question 3
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This is a first best policy rule for public provision wherein it presupposes that the
government or social planner can collect revenue by using lump-sum taxes.
Select one:
a. Enrico Barone
b. Partial equilibrium
c. Samuelson Rule 
d. Clarke-Groves Mechanism
This mechanism is a system of side-payments which introduced to the individual
alongside the willingness to pay.
Select one:
a. Clarke-Groves Mechanism 
b. Enrico Barone
c. Samuelson Rule
d. Partial equilibrium

He created the invisible hand idea that is one of the most fundamental equilibrating
relations in Economic Theory.
Select one:
a. Jeremy Bentham
b. Adam Smith 
c. Leon Walras
d. Richard Cantillon
He paints a vivid picture of the demerits of the welfare state in this relation.
Select one:
a. Walter Korpi
b. Neoliberal arguments
c. Welfare dependency
d. David Marsland 
Question 2
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This welfare consists of means and needs tested benefits, which are administered at
the local levels.
Select one:
a. Social security
b. Bismarkia
c. Johnny Munkhammar
d. Marginal welfare 
This country is now portrayed as being a welfare state in disarray and voices both
domestic and international have argued that its own model is more and more part
of the problem rather than the solution.
Select one:
a. Sweden 
b. Swedish welfare model
c. Gosta Esping-Andersen
d. Social services
Question 6
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This is for the most part not a universal system proper connected to citizens' rights,
but rather best described as wage-labor based which to some extent even workfare
rather than welfare wherein it is not tax financed but financed through compulsory
payments on the wage to a nationally administered social security system.
Select one:
a. Bismarkia
b. Johnny Munkhammar
c. Marginal welfare
d. Social security 
He is the Swedish economist with a book European Dawn - After the Social Model
which summarizes the neoliberal case against the Swedish model very succinctly.
Select one:
a. Bismarkia
b. Johnny Munkhammar 
c. Social security
d. Marginal welfare
Question 9
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He has been given ample room in the columns to put forward the case wherein he
argues that income social security is an ever-increasing burden on the welfare state.
Select one:
a. Neoliberal arguments
b. Stefan Folster and Fredrik Bergstrom
c. Dagens Nyheter
d. Anders Isaksson 
He argued that backward nations in the OECD were rather catching up with
Sweden than Sweden lagging behind.
Select one:
a. Neoliberal arguments
b. David Marsland
c. Walter Korpi 
d. Welfare dependency
Question 2
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He wrote a famous typology of welfare regimes under capitalism.
Select one:
a. Sweden
b. Social services
c. Swedish welfare model
d. Gosta Esping-Andersen 
Question 3
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They summarize their results that the intersection between the official lie and the
private truth has created unstable welfare systems.
Select one:
a. Dagens Nyheter
b. Stefan Folster and Fredrik Bergstrom 
c. Neoliberal arguments
d. Anders Isaksson
Question 4
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This model has for some time attracted attention worldwide wherein in the golden
era of welfare capitalism, it was hailed left and right for its unique combination of
a capitalist ownership structure and a social market.
Select one:
a. Social services
b. Sweden
c. Swedish welfare model 
d. Gosta Esping-Andersen
Question 5
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This is the leading Swedish daily journal that has consistently in its editorial pages
campaigned for social security reforms.
Select one:
a. Dagens Nyheter 
b. Anders Isaksson
c. Stefan Folster and Fredrik Bergstrom
d. Neoliberal arguments
He has been given ample room in the columns to put forward the case wherein he
argues that income social security is an ever-increasing burden on the welfare state.
Select one:
a. Stefan Folster and Fredrik Bergstrom
b. Anders Isaksson 
c. Neoliberal arguments
d. Dagens Nyheter
This is one of the parts of the Swedish welfare state, which most resembles the
image of a general welfare state.
Select one:
a. Sweden
b. Gosta Esping-Andersen
c. Swedish welfare model
d. Social services 
These arguments gained ground from 1980 and onwards in Swedish public debate
wherein this has been conducted in a setting of some irony and with a portion of
outright dishonesty.
Select one:
a. David Marsland
b. Walter Korpi
c. Welfare dependency
d. Neoliberal arguments 
This kind of cost must be constructed before they can be used wherein part of the
cost of capital is interest over the period of time between the moment when work
was done in constructing capital goods and the time when they are producing a
stream of output.
Select one:
a. Equilibrium
b. Stock of wealth
c. Cost of capital 
This is a quantity which can be translated from one number to another by changing
the unit.
Select one:
a. Blast furnaces
b. Equilibrium 
c. Cost of capital
d. Stock of wealth
Question 9
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This is a characteristic by which goods are specified and that they have value that
is purchasing power over each other wherein the list of goods is quite specific with
so many actual particular objects.
Select one:
a. Equilibrium
b. Stock of wealth
c. Blast furnaces 
d. Cost of capital
This can never be expended in a pure form.
Select one:
a. Saving
b. Investment
c. Unit of labor 
d. Adam delved and Eve
This is making current products available for the workers to consume in the
meantime.
Select one:
a. Investment
b. Saving 
c. Adam delved and Eve
d. Unit of labor
He was the first to describe the system as a whole and to show that a competitive
market economy generates a Pareto optimal allocation of resources.
Select one:
a. Abba P. Lerner 
b. Partial equilibrium
c. Pigovian taxes
d. Arrows Impossibility Theorem or the Third Fundamental Theorem of Welfare
Economics
He sees the invisible hand as embodied in a central planner, guiding the economy
to a social optimum.
Select one:
a. Leon Walras
b. Richard Cantillon 
c. Adam Smith
d. Jules Dupuit and Heinrich Gossen
In recent years, this is the most fundamental and loud-voiced criticism of the
Swedish model pertains to its function.
Select one:
a. Welfare dependency 
b. Neoliberal arguments
c. David Marsland
d. Walter Korpi

Sweden has this kind of social security system where payments are compulsory.
Select one:
a. Social security (wrong)
b. Johnny Munkhammar
c. Marginal welfare (wrong)
d. Bismarkia
The theory of the market for corporate control was first put forward by Professor
_______ of the Washington University Law School in 1965.
Select one:
a. Henry G. Manne 
b. Mechanisms
c. Decision management
d. Separation of ownership and control
_______ transactions in enterprise control rights began in 1984 in such cities as
Baoding and Wuhan.
Select one:
a. Prosperous capitalist
b. Yang Xiaowei
c. Residual rights of control
d. China 
Question 4
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_______ is a type of reasoning that is amenable in principle to a multiplicity of
player types such as own-gain maximizes and those preferring equality.
Select one:
a. Amartya Sen
b. Rational-choice game
c. Evolutionary-type reasoning 
d. Vienna Colloquium
The _______ theory came about in the latter half of the 19th century explicitly in
the form of Leon Walras' 1874 work "Elements of Pure Economics" and
subsequently with the addition of graphical representation in his 1892 paper
"Geometrical Theory of the Determination of Prices".
Select one:
a. Walras and Pareto
b. Pareto
c. Godel's proof
d. General equilibrium 
Question 7
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_______ is the boundary of the analyticity of arithmetic which was not airtight and
for the Colloquium's work on general equilibrium theory wherein Carnap's
invocation of ever richer arithmetical languages was problematic and would prove
to be prophetic at least with regard to general equilibrium theory.
Select one:
a. Walras and Pareto
b. Godel's proof 
c. Pareto
d. General equilibrium
Question 8
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_______ and _______ started from observed disequilibrium and through a process
of adjustments, they approached general equilibrium.
Select one:
a. Pareto
b. Godel's proof
c. General equilibrium
d. Walras and Pareto 
_______ is the power to make decisions regarding the distribution of the residue
produced under a contract.
Select one:
a. Residual rights of control 
b. Prosperous capitalist
c. China
d. Yang Xiaowei
Question 11
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The theory of value treats the short period, in which the _______ of capital
equipment is given and it has many applications.
Select one:
a. Physical stock 
b. Neo-classical
c. Equilibrium
d. Capital
Question 12
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Godel's proof is the boundary of the analyticity of arithmetic which was not airtight
and for the Colloquium's work on general equilibrium theory wherein Carnap's
invocation of ever richer arithmetical languages was problematic and would prove
to be prophetic at least with regard to ________.
Select one:
a. Bergson/Samuelson
b. New welfare economics
c. General equilibrium theory 
d. Economic theory
Question 13
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The _______ economist thinks of a position of equilibrium as a position towards
which an economy is tending to move as time goes by.
Select one:
a. Physical stock
b. Capital
c. Neo-classical 
d. Equilibrium
_______ is positive because profits are positive though at the same time the cost
and difficulty of obtaining finance play a part in keeping productive equipment
scarce and so contribute to maintaining the level of profits.
Select one:
a. Capitalist
b. Costs of production
c. Interest 
d. Profit
Question 16
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In the theory of the market for corporate control, the conduct of takeovers by
companies in that market and the accompanying threat of takeover are external
control mechanisms, which can reduce _______.
Select one:
a. Agency costs 
b. Michael Useem
c. External control mechanisms
d. China
Question 17
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The characteristic by which goods are specified and that they have value that is
purchasing power over each other wherein the list of goods is quite specific with so
many actual particular objects is called ________.
Select one:
a. Cost of capital
b. Blast furnaces 
c. Stock of wealth
d. Adam and Eve
Question 18
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The process of accumulation consists in refraining from consuming current output
in order to add to the ________.
Select one:
a. Cost of capital
b. Blast furnaces
c. Adam and Eve
d. Stock of wealth 
Question 19
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_______ theory carried with it key foundational problems surrounding the very
concept of rationality in a game-theoretic setting.
Select one:
a. Evolutionary-type reasoning
b. Vienna Colloquium
c. Rational-choice game 
d. Amartya Sen
Professor _______ of the U.S. Corporate Governance Authority and the Wharton
School stated that the American enterprise system has been transformed from
"management capitalism" with de facto management control to "investor
capitalism" where the investor exercise effective constraints on managers.
Select one:
a. Michael Useem 
b. China
c. External control mechanisms
d. Agency costs
Question 22
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_______ includes the cost of capital goods, and since they must be constructed
before they can be used, part of which is interest over the period of time between
the moment when work was done in constructing capital goods and the time when
they are producing a stream of output.
Select one:
a. Adam and Eve
b. Cost of capital 
c. Blast furnaces
d. Stock of wealth
_______ consists, in essence, in employing labor now in a way which will yield its
fruits in the future.
Select one:
a. Saving
b. Productiveness of capital
c. Stock of capital
d. Investment 
Question 25
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It comes to employ a particular methodological outlook where theory was
understood to correspond with truth and was prior to the dissembling world of
praxis called _______.
Select one:
a. General equilibrium theory
b. Bergson/Samuelson
c. Economic theory 
d. New welfare economics
_______ is the result of the extension of proprietorial enterprises wherein if
proprietors establish a partnership by means of a contract they become partners.
Select one:
a. U.S. Federal Securities Act
b. City of London Regulations
c. Zhu Yikun
d. Partnerships 
Question 28
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_______ of corporate governance is mainly reflected in the market for corporate
control and especially in contention for control rights.
Select one:
a. Michael Useem
b. Agency costs
c. External control mechanisms 
d. China
_______ pioneered the use of utilitarian calculus to obtain judgments about the
social interest by aggregating the personal interests of different individuals in the
form of their respective utilities.
Select one:
a. Kenneth Arrow
b. Utilitarian welfare economics
c. Keynes
d. Bentham 
Question 31
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_______ is a pioneer and advocate of social choice theory and he attacked the
notion of the abstract individual subject displaying a rarefied form of social
behavior integral to the history of economic theory as too simplistic.
Select one:
a. Evolutionary-type reasoning
b. Rational-choice game
c. Vienna Colloquium
d. Amartya Sen 
Question 32
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_______ of restraint in corporate control can be examined with regard to internal
and external mechanisms.
Select one:
a. Separation of ownership and control
b. Henry G. Manne
c. Mechanisms 
d. Decision management
Question 33
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_______ economies are those where the rate of profit is falling in spite of rapid
technical progress and miserable ones are those where the rate of profit is high in
spite of technical stagnation.
Select one:
a. Residual rights of control
b. Prosperous capitalist 
c. Yang Xiaowei
d. China
Question 34
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_______ succinctly defines corporate control as the power exercised over the
company with varying degrees of influence by shareholders or those with related
benefits.
Select one:
a. Zhu Yikun 
b. U.S. Federal Securities Act
c. Partnerships
d. City of London Regulations
Question 35
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_______ is characterize by a unit of labor that was expended at a certain time in
the past is more valuable today than a unit expended today, because its fruits are
already ripe.
Select one:
a. Saving
b. Investment
c. Stock of capital
d. Productiveness of capital 
The _______ and _______ refers to the phenomenon of the almost total lack of
control rights or lack of direct control rights over company management policy by
shareholders in publicly held corporations.
Select one:
a. Decision management
b. Henry G. Manne
c. Mechanisms
d. Separation of ownership and control 
Question 39
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_______ held that the utilities of different commodities were not independent with
some commodities functioning as substitutes or complements for each other or the
consumption of a commodity affecting the utility of another commodity in some
fashion.
Select one:
a. Walras and Pareto
b. Godel's proof
c. General equilibrium
d. Pareto 
Question 40
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_______ was substantially criticized if not undermined by the argument that
interpersonal comparisons of utility had no scientific basis.
Select one:
a. Kenneth Arrow
b. Bentham
c. Utilitarian welfare economics 
d. Keynes
_______ includes the decision's initial proposal and its implementation after
authorization while decision control includes the examination and approval of the
proposed decision and supervision of its implementation.
Select one:
a. Mechanisms
b. Henry G. Manne
c. Separation of ownership and control
d. Decision management 
Question 43
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_______ is the specific list of all the goods in existence at any moment including
work-in-progressing the pipe lines of production.
Select one:
a. Investment
b. Saving
c. Stock of capital 
d. Productiveness of capital
_______ considered that claim to residue refers to residual rights of control with
the implication that those with claims regarding the ownership of residue are the
contractual controllers in respect of actions concerning the assets and have the final
decision and also that they bear operational profits and losses independently.
Select one:
a. China
b. Residual rights of control
c. Yang Xiaowei 
d. Prosperous capitalist
When _______ and _______ span there were evidently a spade and a spindle
already in existence.
Select one:
a. Cost of capital
b. Stock of wealth
c. Blast furnaces
d. Adam and Eve 
Question 48
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_______ provides control which means that the power to exercise a controlling
influence over a company's operational management and specific policies or the
activity of a natural person directly or indirectly whether by voting, through one or
more intermediaries such as a contract or other means.
Select one:
a. Partnerships
b. U.S. Federal Securities Act 
c. Zhu Yikun
d. City of London Regulations
The _______ of a capitalist who has the machine built in his own workshops will
expect to receive, from sales of the final output which includes profit on the
interest on the cost of having the machine built reckoned over the period of
construction.
Select one:
a. Profit 
b. Costs of production
c. Capitalist
d. Interest
The _______ of the United Kingdom define control rights as the ownership or joint
ownership of 30% or more of the voting shares in a company whether or not the
amount owned constitutes the actual voting rights.
Select one:
a. City of London Regulations 
b. U.S. Federal Securities Act
c. Zhu Yikun
d. Partnerships
A _______ buys a machine readymade pays a price for it which includes profit to
the capitalist who sells it.
Select one:
a. Capitalist 
b. Costs of production
c. Interest
d. Profit
_______ continued to work on the possibility of the existence, stability, and
uniqueness of general equilibrium theory in increasingly complex formal
mathematical models.
Select one:
a. Vienna Colloquium 
b. Amartya Sen
c. Evolutionary-type reasoning
d. Rational-choice game
_______ had diagnosed the Great Depression of the 1930s as a failure of aggregate
demand.
Select one:
a. Bentham
b. Keynes 
c. Utilitarian welfare economics
d. Kenneth Arrow
There is a quantity which can be translated from one number to another by
changing the unit and this is called ________.
Select one:
a. Equilibrium 
b. Physical stock
c. Capital
d. Neo-classical
_______ Company Law provides that companies can take two forms, namely
limited liability companies or joint stock limited companies.
Select one:
a. China 
b. Agency costs
c. External control mechanisms
d. Michael Useem
_______ considers social welfare function, which although still problematic along
positivist grounds, provided a framework for ranking different social states on the
basis of a configuration or profile of individual preferences.
Select one:
a. General equilibrium theory
b. Bergson/Samuelson 
c. Economic theory
d. New welfare economics
_______ used only one basic criterion of social improvement called the Pareto
comparison.
Select one:
a. Economic theory
b. New welfare economics 
c. General equilibrium theory
d. Bergson/Samuelson
_______ is making current products available for the workers to consume in the
meantime.
Select one:
a. Productiveness of capital
b. Investment
c. Saving 
d. Stock of capital
_______ is an un-invested finance for a sum of money and the net receipts of a
business are sums of money.
Select one:
a. Equilibrium (worng)
b. Physical stock (NS)
c. Capital
d. Neo-classical
The _______ determine supply price consist of wages and profits.
Select one:
a. Interest (wrong)
b. Costs of production
c. Profit
d. Capitalist (NS)
_______ analyzed the process by which a social welfare function might be
formulated, arguing that a social welfare function is only a valid concept if it is
derived from the preferences of the individuals composing the society.
Select one:
a. Utilitarian welfare economics  (WRONG)
b. Kenneth Arrow (NS)
c. Bentham
d. Keynes
Anoutcome is said to be efficient if the economy is getting all it can from the
scarce resources it has available.
Select one:
True 
False
Welfare independency remains a problem for those individuals who are forced by
meager economic circumstances to form their livelihood on receiving welfare.
Select one:
True 
False
Keynes had diagnosed the Great Depression of the 1930s as a failure of aggregate
demand.
Select one:
True 
False
Stock of capital as the specific list of all the goods in existence at any moment
including work-in-progressing the pipe lines of production.
Select one:
True 
False
Question 5
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Jevons is largely responsible for the simplification of Bentham's utilitarian
philosophy and it had come to be used as a foundation for mainstream
microeconomics.
Select one:
True 
False
Opportunity cost is one of the Ten Principles of Economics wherein the cost of
something is what you give up to get it such that one good as measured in terms of
the other good.
Select one:
True 
False
Question 8
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________ is a positive because profits are positive though at the same time the cost
and difficulty of obtaining finance play a part in keeping productive equipment
scarce and so contribute to maintaining the level of profits.
Select one:
a. Interest 
b. Grossmann and Hart
c. Neo-classical economist
d. Clarke-Groves mechanism
Regional cost defined as the additional cost associated with a one-unit increase in
the level of the activity.
Select one:
True 
False
There is a quantity which can be translated from one number to another by
changing the unit and this is calledequilibrium.
Select one:
True
False 
Mechanisms of restraint in corporate control can be examined with regard to
internal and external mechanisms wherein internal control mechanisms are also
known as the company's internal governance structure.
Select one:
True 
False
Question 13
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This local market demand for a product includes both domestic and foreign
demand.
Select one:
True 
False

The theory of the market for corporate control was first put forward by
ProfessorDavid Macherof the Washington University Law School in 1965.
Select one:
True 
False
________ is a system of side payments that was introduced to the individual
alongside the willingness to pay.
Select one:
a. Clarke-Groves mechanism 
b. Grossmann and Hart
c. Neo-classical economist
d. Interest
Question 17
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Rectangular-flow diagram represents the flows of goods and services between
households and firms.
Select one:
True 
False

The theory of the market for corporate control was first put forward by ________
of the Washington University Law School in 1965.
Select one:
a. Michael Jensen
b. Henry G. Manne 
c. External control mechanisms
d. Berle and Means
Question 19
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Socrates began his Republic with an economic interpretation of history where he
begins by seeking the meaning of justice.
Select one:
True
False 
Question 20
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U.K. Federal provides control which means the power to exercise a controlling
influence over a company's operational management or general and specific
policies or the activity of a natural person directly or indirectly whether by voting,
through one or more intermediaries, a contract or other means.
Select one:
True 
False
Prosperous capitalist economies are those where the rate of profit is falling in spite
of rapid technical progress and miserable ones are those where the rate of profit is
high in spite of technical stagnation.
Select one:
True 
False
Question 22
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Economics is the study of how individuals and societies use limited ________ to
satisfy unlimited wants.
Select one:
a. Additional cost
b. Next-best
c. Private truth
d. Resources 
Question 23
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Informal social networks are face-to-face relationships between a limited number
of ________ who know each other and are bound together by kinship, friendship
or propinquity.
Select one:
a. Homogeneity
b. Individuals 
c. Inputs
d. Services
Question 24
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The only part of the theory of value which treats of the short period, in which the
technological stock of capital equipment is given, has any application.
Select one:
True 
False
United Kingdom Company Law provides that companies can take two forms,
namely limited liability companies or joint stock limited companies.
Select one:
True
False 
Question 26
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The costs of production which determine supply price consist of wages and profits.
Select one:
True 
False
Question 27
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The theory of ________ examines the tradeoffs that people face in their role as
consumers.
Select one:
a. Consumer choice 
b. Circular-flow diagram
c. Enrico Barone
d. Samuelson Rule
Decision management includes the decision's initial proposal and its
implementation after authorization while decision control includes the examination
and approval of the proposed decision and supervision of its implementation.
Select one:
True 
False
Question 30
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________ wrote that the definition of corporate controlis the authority to employ
and dismiss managers at the highest level and to determine their remuneration.
Select one:
a. External control mechanisms
b. Henry G. Manne
c. Berle and Means
d. Michael Jensen 
Gornen's theoryof social capital is that "horizontal" face-to-face integration spills
upwards into a nationally integrated network of hierarchical institutions of civil
society to make democracy work.
Select one:
True 
False
The category of land includes all natural resources and these natural resources
include the land itself, as well as any minerals, oil deposits, timber, or water that
exists on or below the ground.
Select one:
True
False 
Familial economics is the study of decisions, relationships and behavioral patterns
of individuals, families, organizations, industries and markets.
Select one:
True 
False
Question 37
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The comparative advantage production of a good is if the individual can produce
more than the other individuals.
Select one:
True 
False
The wage-labor based social security system is not welfare and definitely not a
hand-out from the government but a paid-for insurance system.
Select one:
True 
False
Question 41
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The General Equilibriumtheory came about in the latter half of the 19th century
explicitly in the form of Leon Walras' 1874 work, Elements of Pure Economics,
and subsequently with the addition of graphical representation in his 1892 paper
"Geometrical Theory of the Determination of Prices".
Select one:
True
False 
John Stuart Mill who held that the utilities of different commodities were not
independent with some commodities functioning as substitutes or complements for
each other or the consumption of a commodity affecting the utility of another
commodity in some fashion.
Select one:
True 
False
The classical economist thinks of a position of equilibrium as a position towards
which an economy is tending to move as time goes by.
Select one:
True
False 
Oikonomiks is a studied human activities involved with "wealth-getting" which
could be unnatural as well as natural.
Select one:
True 
False
The City of London Regulations of the United Kingdom define control rights as
meaning the ownership or joint ownership of 30% or more of the voting shares in a
company whether or not the amount owned constitutes the actual voting rights.
Select one:
True
False 
Absolute advantage is the production of a ________ if the individual can produce
more than the other individuals.
Select one:
a. Social security
b. Good 
c. Production
d. Barter system
Residual rights of control are the power to make decisions regarding the
distribution of the residue produced under the contract.
Select one:
True 
False
Investment is making current products available for the workers to consume in the
meantime.
Select one:
True
False 
Walras and Pareto started from observed disequilibrium and through a process of
adjustments, they approached general equilibrium.
Select one:
True 
False
Chrematistiks was an analysis of how decisions were made regarding the
management of resources.
Select one:
True 
False
Economist also uses models to learn about the world but instead of being made of
plastic, they are most often composed of diagrams and equations.
Select one:
True 
False
The absolute price commodity is a measure of how expensive a good is in terms of
units of some other good or service.
Select one:
True 
False
The cost a capitalist who has the machine built in his own workshops will expect to
receive, from sales of the final output, includes profit on the interest on the cost of
having the machine built reckoned over the period of construction.
Select one:
True
False 
Question 12
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The theory of consumer choice examines the tradeoffs that people face in their role
as Producers.
Select one:
True 
False
________ represents the flows of goods and services between households and
firms.
Select one:
a. Enrico Barone
b. Circular-flow diagram 
c. Consumer choice
d. Samuelson Rule
Circular-flowdiagram offers a simple way of organizing all the economic
transactions that occur between households and firms in the economy.
Select one:
True 
False
Jeremy Bentham draws an analogy between the Principles of Maximum Energy
and the Principles of Greatest Happiness.
Select one:
True
False 
Question 17
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Adam Smith is the famous seventeenth century scientist and mathematician
allegedly became intrigued one day when he saw an apple fall from an apple tree.
Select one:
True 
False
Monetary companies own the factors of production and consume all the goods and
services that the firms produce.
Select one:
True
False 
Walter Korpi argued that previously relatively backward nations in the ________
were rather catching up with Sweden than Sweden lagging behind and that this was
only to be expected since higher growth rates are to be expected from countries
that from the outset are relatively poorer.
Select one:
a. Social exclusion
b. Money
c. OECD 
d. Social Capital
The characteristic by which goods are specified is that they have value that is
purchasing power over each other for which the list of goods is quite specific.
Select one:
True
A single largest social security system is the old age insurance for those over 20
years of age.
Select one:
True 
False
Social capital networks produce goods and ________ that are not a new
phenomenon but they are an inevitable part of every society, ancient or modern,
high income or low income.
Select one:
a. Inputs
b. Welfare
c. Individual
d. Services 
Hall and Hitchsummarize what they found in their results that the intersection
between the official lie and the private truth has created unstable welfare systems.
Select one:
True
False 
Question 25
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Arthur Montblancis the best known of the early contributors to French rationalist
microeconomics wherein he perceives the quantity demanded as a continuous
function of the price.
Select one:
True 
False
Andrew Strowsky is an Austrian who developed the concept of marginal utility
concurrently and independent of Jevons.
Select one:
True
False 
Question 27
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Firms produce goods and services using inputs, such as labor, land, and capital
(buildings and machines).
Select one:
True 
False
Question 28
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Holistic characterizations of cultures and societies as trusting as well as thick or
thin in network structures are only meaningful insofar as there is a substantial
amount of ________ within a society or at least one perspective is hegemonic.
Select one:
a. Homogeneity 
b. Individual
c. Transitionary
d. Welfare
Question 29
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The regional self-interest means that individuals are assumed to select the
alternative(s) that they believe will make them happiest, given the information that
they possess at the time of the decision.
Select one:
True 
False
Pareto was the successor to Walras at the University of Lausanne whose name has
been associated with the basic criteria used as a measure of efficiency.
Select one:
True 
False
Question 31
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International market is taken into account where the demand for a product includes
both domestic and foreign demand.
Select one:
True 
False
Partnershipsare the result of the extension of proprietorial enterprises wherein if
proprietors establish a partnership by means of a contract they become partners.
Select one:
True
False 
Cournot influence on the development of microeconomics is through the work of
Leon Walras.
Select one:
True
False 
According to Mill's theorem, if private parties can bargain without cost over the
allocation of resources, then the private market will always solve the problem of
externalities and allocate resources efficiently.
Select one:
True 
False
Economic good is if the quantity of the good demanded exceeds the quantity
supplied at a zero price.
Select one:
True
False 
Self-interest people may donate their time to charitable organizations, give gifts to
loved ones, contribute to charities and engage in other similarly altruistic activities.
Select one:
True 
False
Question 38
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Egoistic Hedonism was defined by Sidgwick as the system that fixes as the
reasonable ultimate end of each individual's action his own greatest happiness.
Select one:
True 
False
Question 39
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John Stuart Mill is an English philosopher who laid the foundation for British
Utilitarian microeconomics in his Introduction to the Principles of Morals and
Legislation.
Select one:
True
False 
Question 40
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General equilibrium model explains how ________ used to produce a set of goods
that will result in the maximum social wealth.
Select one:
a. Services
b. Individual
c. Inputs 
d. Welfare
Question 41
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Straight system is a market system in which goods or services are traded directly
for other goods or services.
Select one:
True 
False
Firms produce goods and services using inputs, such as labor, land, and capital
(buildings and machines).
Select one:
True 
False
Professor Michael Useemof the U.S. Corporate Governance Authority and the
Wharton School stated that the American enterprise system has been transformed
from "de facto capitalism" with de facto management control to "investor
capitalism" where the investor exercise effective constraints on managers.
Select one:
True
False 
Question 45
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Capital when it consists of un-invested finance is a sum of money and the net
receipts of a business are sums of money.
Select one:
True 
False
Question 46
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________ are a necessary part of a modern society, which by definition requires
impersonal bureaucratic organizations of state and market that can routinely
produce complex goods such as automobiles and services such as university
education.
Select one:
a. Economy
b. Formal organizations 
c. Income
d. Scarce resources
Question 47
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Babbage pioneered the use of utilitarian calculus to obtain judgments about the
social interest by aggregating the personal interests of different individuals in the
form of their respective utilities.
Select one:
True 
False
The separation of ownership and control refers to the phenomenon of the almost
total lack of control rights or lack of direct control rights over company
management policy by shareholders in privately held corporations.
Select one:
True
False 
Question 49
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Internal control mechanisms of corporate governance is mainly reflected in the
market for corporate control and especially in contention for control rights.
Select one:
True
False 
Question 50
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Finance is positive because profits are positive though at the same time the cost
and difficulty of obtaining finance play a part in keeping productive equipment
scarce, and so contribute to maintaining the level of profits.
Select one:
True 
False
In the theory of the market for corporate control, the conduct of takeovers by
companies in that market and the accompanying threat of takeover are external
control mechanisms, which can reduceagency costs.
Select one:
True 
False
Zhu Yikun succinctly defines corporate control as the power exercised over the
company with varying degrees of influence by shareholders or those with related
benefits.
Select one:
True
This monetary economy individuals trade goods or services for money and then
use this money to buy the goods or services that they wish to acquire.
Select one:
True 
False
Question 4
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Henry Wright defines social capital in terms of networks that can be used as
instruments for the production of goods and services.
Select one:
True
False 
Question 5
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________ was developed by utilitarian economists such as Marshall and Pigou,
taking inspiration from their predecessor Jeremy Bentham.
Select one:
a. Henry G. Manne
b. Traditional welfare economics 
c. External control mechanisms
d. Evolutionary game
Question 6
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Scarcity implies the existence of tradeoffs wherein these tradeoffs can be
illustrated quite nicely by a production possibilities frontier.
Select one:
True 
False
Question 7
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Swedish right-wing politician and think-tank activist Ron Vane exposes clearly his
arguments in his pamphlet Svaghetens moral.
Select one:
True
False 
Question 8
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Godel's proof is the boundary of the analyticity of arithmetic was not airtight and
for the Colloquium's work on general equilibrium theory, Carnap's invocation of
ever richer arithmetical languages was problematic and would prove to be
prophetic at least with regard to general equilibrium theory.
Select one:
True 
False
Question 9
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The Germans are often regarded as the first important contributors to Western
culture.
Select one:
True
False 
Question 10
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Social psychological theories of trust normally treat ________ as a diffuse attribute
of an individual--a person trusts others in many different situations.
Select one:
a. Utilitarian
b. Attributes
c. Social capital 
d. Dupuit
Question 11
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________ provided a justification for and explanation of the activities of the rising
merchant class.
Select one:
a. Microeconomics
b. Mercantilism 
c. Law of demand
d. Economic theory
Question 12
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________ started from a pragmatic perspective, defining corporate control as the
actual right to choose the members of the board of directors of a company or the
majority of the members whether through the exercise of legal powers or by
bringing pressure to bear.
Select one:
a. External control mechanisms
b. Henry G. Manne
c. Berle and Means 
d. Michael Jensen
Question 13
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Social ability refers to the ability to organize production and bear risks.
Select one:
True
False 
Stefan Folster and Fredrik Bergstrom summarize their results that the intersection
between the official lie and the ________ has created unstable welfare systems.
Select one:
a. Resources
b. Private truth 
c. Additional cost
d. Next-best
Question 16
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A capitalist who buys a machine readymade pays a price for it which includes
profit to the capitalist who sells it.
Select one:
True 
False
Question 17
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Bureaucratic organizations are predictably expected to deliver goods and services
to individuals as citizens and customers.
Select one:
True
Saving consists, in essence, in employing labor now in a way which will yield its
fruits in the future.
Select one:
True
False 
Question 19
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Industrial welfare economics was substantially criticized if not undermined by the
argument that interpersonal comparisons of utility had no scientific basis.
Select one:
True
False 
________ is the study of decisions, relationships and behavioral patterns of
individuals, families, organizations, industries and markets.
Select one:
a. Mercantilism
b. Microeconomics 
c. Law of demand
d. Economic theory
Question 22
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Adam Smith developed an analysis of the moral system called The Theory of
Moral Sentiments as well an economic system called The Wealth of Nations.
Select one:
True 
False
Question 23
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There is information that no one in Sweden complain that those who have pension
insurance in a private company become dependent upon that company nor do that
such insurance create disincentives to work.
Select one:
false
Pareto analyzed the process by which a social welfare function might be
formulated, arguing that a social welfare function is only a valid concept if it is
derived from the preferences of the individuals composing the society.
Select one:
True
False 
Question 25
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The main system of protection from income-loss and/or absence from the labor
market in Sweden remains the overall social security system.
Select one:
True 
False
Question 26
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Total utility of society was simply the sum of the individual utilities which focuses
the analysis on the ________.
Select one:
a. Individual 
b. Welfare
c. Transitionary
d. Homogeneity
Question 27
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This Microeconomics may be used as a tool to aid in the decision making process.
Select one:
True 
False
Question 28
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The process of accumulation consists in refraining from consuming current output
in order to add to thestock of wealth.
Select one:
True 
False
China transactions in enterprise control rights began in 1984 in such cities as
Baoding and Beijing.
Select one:
True 
False
The law of supply is the inverse relationship exists between the price of a good and
the quantity demanded in a given time period.
Select one:
True
False 
Question 31
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Cost of capital includes the cost of capital goods and since they must be
constructed before they can be used, part of the cost of capital is interest over the
period of time between the moment when work was done in constructing capital
goods and the time when they are producing a stream of output.
Select one:
True 
False
Question 32
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The Welfare Capital survey found that in Russia, four-fifths to nine-tenths do not
belong to any voluntary association.
Select one:
True
False 
Question 33
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The production possibilities frontier simplifies a complex ________ to highlight
and clarifies some basic ideas.
Select one:
a. Economy 
b. Scarce resources
c. Formal organizations
d. Income
Question 34
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________ approach encourages the focus to be on individual behavior and the
optimization of the welfare of the individual.
Select one:
a. Dupuit
b. Social capital
c. Attributes
d. Utilitarian 
Question 35
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Opportunity cost is defined as the cost of not selecting the ________ alternative.
Select one:
a. Resources
b. Private truth
c. Additional cost
d. Next-best 
Question 36
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Entrepreneurial ability refers to the ability to organize ________ and bear risks.
Select one:
a. Barter system
b. Production 
c. Good
d. Social security
Question 37
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Manufacturers own the factors of production and consume all the goods and
services that the firms produce.
Select one:
True
False 
Question 38
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________ of corporate governance are mainly reflected in the market for corporate
control and especially in contention for control rights.
Select one:
a. Berle and Means
b. External control mechanisms 
c. Michael Jensen
d. Henry G. Manne
Question 39
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Productiveness of capital consists in the fact that a unit of labor that was expended
at a certain time in the past is more valuable today than a unit expended today
because its fruits are already ripe.
Select one:
True 
False
Question 40
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Goods that are used to produce other goods or services are called economic
resources and are also known as inputs or factors of production.
Select one:
false
Adam Smith and David Ricardo argued that similar benefits accrue from
international specialization and trade.
Select one:
True 
False
Demand is the relationship that exists between the price of a good and the quantity
supplied in a given time period.
Select one:
True 
False
Question 43
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Economists say that supplementary goods areincrease in the price of one result in a
reduction in the demand for the other.
Select one:
True 
False
Economics evaluates the current state of our world and to speculate on ways that it
might be improved where it is an important aspect of our education.
Select one:
True 
False
Question 45
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Dynamic change can also involve an increase in total welfare in the ________
insofar as greater use of formal networks is more efficient and effective.
Select one:
a. Income
b. Household 
c. Communist Party
d. Resources
Question 46
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When Adam delved and Eve span, there were evidently a spade and a spindle
already in existence.
Select one:
True 
False
Question 47
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Zhu Yikun considered that claim to residue refers to residual rights of control with
the implication that those with claims regarding the ownership of residue are the
contractual controllers in respect of actions concerning the assets and have the final
decision and also that they bear operational profits and losses independently.
Select one:
True 
False
Households and firms interact in two types of markets wherein in the markets for
goods and services, firms are buyers and households are sellers.
Select one:
True 
False
Lenism developed the party as an organization with the totalitarian vocation of
abolishing informal social networks and mobilizing the population into party-led
formal organizations covering every sphere of social life.
Select one:
True
False 
Question 50
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Market advantage is the production of a good if the individual can produce the
good at the lowest opportunity cost.
Select one:
True
False 
The ________ survey found that in Russia, four-fifths to nine-tenths do not belong
to any voluntary association.
Select one:
a. OECD
b. Social Capital 
c. Social exclusion
d. Money
________ suggested that a perfect market economy and a perfectly planned market
economy were equivalent.
Select one:
a. Samuelson Rule
b. Circular-flow diagram
c. Consumer choice
d. Enrico Barone 
Education is a human capital determinant of individual ________ either directly or
indirectly.
Select one:
a. Welfare 
b. Individual
c. Homogeneity
d. Transitionary