20. economists generally think that allocating resources by governmental controls or orders a. is more…

20. economists generally think that allocating resources by governmental controls or orders a. is more efficient than doing so by reliance on market transactions. b. is hampered by the lack of good economic information for state officials to use. c. is continually being improved by the effects of rent seeking by private interests. d. works well because state officials usually have strong incentives to produce efficiency. 21. the theory that the growth of market economies must strengthen democratic government a. if fully consistent with all relevant historical evidence from the past one hundred years. b. is contradicted by the histories of germany, brazil, and chile during the past 90 years. c. is based on the observation that market economies promote economic equality. d. none of the above 22. which of the following statements is not correct? a. there is complete agreement that market economies have no bad effects on moral education. b. some writers argue that commercial activity teaches people to be thrifty, prudent, and cooperative. c. there continues to be controversy regarding how markets affect human character. d. to some observers the prevalence of corporate crime shows that markets teach immorality. 23. any economic inequalities produced by the operation of a market economy a. must be the product of differences in industry, enterprise and other such virtues. b. are usually quickly removed by the operation of automatic market stabilizers. c. may result from the effects of luck (good and bad), inheritance, and illegal conduct. d. are strongly condemned by libertarian economists and philosophers. 24. which of the following states an objection to economic inequalities generated by market economies? a. suspicions about their origins can reduce respect for government and lead to social conflict. b. they can waste resources by fostering extravagant expenditures on frivolous luxuries. c. they can encourage domination of the government by the affluent classes. d. all of the above

20. economists generally think that allocating resources by governmental controls or orders a. is more efficient than doing so by reliance on market transactions. b. is hampered by the lack of good economic information for state officials to use. c. is continually being improved by the effects of rent seeking by private interests. d. works well because state officials usually have strong incentives to produce efficiency. 21. the theory that the growth of market economies must strengthen democratic government a. if fully consistent with all relevant historical evidence from the past one hundred years. b. is contradicted by the histories of germany, brazil, and chile during the past 90 years. c. is based on the observation that market economies promote economic equality. d. none of the above 22. which of the following statements is not correct? a. there is complete agreement that market economies have no bad effects on moral education. b. some writers argue that commercial activity teaches people to be thrifty, prudent, and cooperative. c. there continues to be controversy regarding how markets affect human character. d. to some observers the prevalence of corporate crime shows that markets teach immorality. 23. any economic inequalities produced by the operation of a market economy a. must be the product of differences in industry, enterprise and other such virtues. b. are usually quickly removed by the operation of automatic market stabilizers. c. may result from the effects of luck (good and bad), inheritance, and illegal conduct. d. are strongly condemned by libertarian economists and philosophers. 24. which of the following states an objection to economic inequalities generated by market economies? a. suspicions about their origins can reduce respect for government and lead to social conflict. b. they can waste resources by fostering extravagant expenditures on frivolous luxuries. c. they can encourage domination of the government by the affluent classes. d. all of the above

Answer

Brief Explanations:

  • Question 20: State - officials often lack comprehensive economic information, making government - controlled resource allocation less efficient compared to market - based allocation. Rent - seeking by private interests undermines it, and state officials don't always have strong efficiency incentives.
  • Question 21: The growth of market economies has not always led to democratic government strengthening, as seen in the histories of Germany, Brazil, and Chile.
  • Question 22: There is no complete agreement that market economies have no negative effects on moral education. There are different views on how markets affect human character.
  • Question 23: Economic inequalities in a market economy can result from luck, inheritance, and illegal conduct, not just differences in virtues. Automatic market stabilizers don't quickly remove them, and not all libertarians condemn them.
  • Question 24: All the reasons listed (suspicions about origins reducing respect for government, waste of resources due to luxury spending, and the wealthy dominating the government) are valid objections to economic inequalities generated by market economies.

Answer:

    1. b
    1. b
    1. a
    1. c
    1. d