1.Formal economic theory is based on assumptions such as:
a.the value of a particular commodity decreases as it becomes more scarce.
b.only occasionally do people maximize their material well-being.
c.people, when exchanging goods and services, naturally strive to maximize material well-being and profits.
d.families will compete against each other to assert rights of ownership and allocation.
e.in societies where there is formal market exchange (commercialism), the market will determine all economic activities of individuals.
2.Rules that govern the allocation of resources and how they are used are found in:
a.very few societies.
b.only food-collecting societies.
c.Western societies only.
d.all societies in the world.
e.all food-producing societies.
3.In terms of private property rights to land, which statement is true?
a.Food collectors seldom have the notion of personal land ownership.
b.Only elites in pastoral societies own pasture lands.
c.Only chiefs in horticultural societies own the land that is planted.
d.In food-producing societies all individuals have private land ownership.
e.All state societies have private individual land ownership.
4.Food collecting communities’ control of land rights:
a.is uniform in all food collecting societies.
b.is learned from contact with the surrounding societies (they tend to follow the same rules).
c.varies because in some societies territorial boundaries between bands or families are rigorously maintained.
d.is likely to continue long into the future in spite of contact with outside societies.
e.tends to be more legalistic when these communities are part of a state society.
5.Which of the following is not a major difference between business firms and households as productive units?
a. The business firm is a more productive unit than the household. b. The household unit performs more functions than the business firm. c. The business firm is more self-sufficient than the household. d. The household uses some of its resources for non-productive ends. e. The business firm is almost exclusively a unit of production.
6.The universal division of labor based on sex may occur because:
a.men always have greater strength than women.
b.men are always afraid of taking care of children, unlike women.
c.in terms of reproduction, men tend to be more expendable than women.
d.in terms of social skills, men are more likely to want to interact publicly than women.
e.women most frequently choose to spend time with their children.
7.In a number of developing countries today:
a.a decreasing number of children under age 14 engage in wage employment.
b.children only work on household chores and are not allowed to work in factories.
c.children are prohibited by their religion to work for wages.
d.an increasing number of children under age 12 are engaged in wage employment.
e.children are being replaced by women as the primary wage earners for the family.
8.Wage employment of children under age 14 is nearly universally condemned for all of the following reasons except:
a.children are often exploited.
b.children often work in unsafe and dangerous conditions.
c.children lose their opportunity for proper education.
d.children cannot earn enough money to help their families.
e.children are exposed to dangerous substances.
9.Reciprocity refers to an exchange of goods and/or services of:
a.unequal value that occurs at the same moment in time.
b.exactly the same value that occurs over a short period of time....