Question

1. an ideology is usually defined to be

a. a type of scientific theory used to construct models with multivariate functions.
b. a system of beliefs that a social class uses to defend and advance its important interests.
c. any theory that describes only correlations among variables and no causal relationships.
d. any set of values and beliefs useful in justifying revolutionary social changes.

1. the economic insecurities generated by market economies

a. have steadily diminished in recent decades with the elimination of business cycles.
b. can result from both the business cycle and technological changes.
c. have for a long time been largely ignored by western governments, especially in europe.
d. can easily be eliminated by simply giving people secure rights to their jobs.

1. the principle of consumer sovereignty

a. asserts that the distribution of production in any economy should be controlled by consumer demands.
b. can be effective only under the constraints created by extensive advertising.
c. is limited by the perceived need for governmental prohibitions on consumption of dangerous drugs.
d. all of the above

1. price competition is weakest when the firms in an industry are

a. engaged in a price war.
b. not giving discounts off list prices of their products.
c. practicing collusive pricing.
d. exhibiting predatory pricing.

1. michael porter holds that the competitive power of any business firm is limited by

a. only the similar power of its immediate rivals selling the same products that it does.
b. the bargaining power of its customers and suppliers in its markets.
c. the risk that the government will enter its industry and begin controlling its prices
d. the rate at which its products become obsolete in the eyes of consumers.

1. one can object to market competition because of its tendencies to

a. waste resources through inefficient investments in advertising and marketing.
b. strengthen incentives to degrade product quality and workplaces.
c. generate exploitative conduct that hurt the weak and the poor.
d. all of the above

Explanation:

1. Ideology is a system of beliefs used by a social - class to further its interests.
2. Economic insecurities in market economies result from business cycles and technological changes.
3. Consumer sovereignty means production distribution is controlled by consumer demands.
4. Price competition is weakest when firms practice collusive pricing.
5. Michael Porter says a firm's competitive power is limited by customer and supplier bargaining power.
6. Market competition can be objected to for reasons like wasteful advertising, product - quality degradation, and exploitative conduct.

Answer:

1. B. a system of beliefs that a social class uses to defend and advance its important interests.
2. B. can result from both the business cycle and technological changes.
3. A. asserts that the distribution of production in any economy should be controlled by consumer demands.
4. C. practicing collusive pricing.
5. B. the bargaining power of its customers and suppliers in its markets.
6. D. all of the above