61) Who was the author of the following prediction: in the absence of a system for enforcing order in society, life will be “solitary, poor, nasty, brutish, and short”?

A) Thomas Hobbes

B) John Maynard Keynes

C) Thomas Kuhn

D) Jean-Jacques Rousseau

E) Adam Smith

62) A commercial society, as described by Adam Smith, develops when

A) maximizing income becomes the ultimate objective for most people.

B) more people are employed in service industries than in agriculture and manufacturing.

C) private interest replaces the public interest.

D) the division of labor extends itself throughout the society.

E) traditional values give way to commercial values.

63) Adam Smith used the term commercial society to refer to a society in which

A) business interests control the political system.

B) everyone identifies value with price.

C) everyone lives by exchanging.

D) increased income is everyone’s principal life goal.

E) people behave without regard for the interests of others.

64) The author of An Inquiry Into the Nature and Causes of the Wealth of Nations was

A) Duncan Bradstreet.

B) Dow Jones.

C) John Maynard Keynes.

D) Karl Marx.

E) Adam Smith.

65) According to your textbook, the benefits of civilization are heavily dependent on

A) accurate numerical estimates by government officials of available resources and of basic consumption requirements.

B) agreement among the members of society on the best means for achieving their goals.

C) agreement among the members of society on the goals to be pursued.

D) government planning for long-run economic growth.

E) the ability to induce other people to cooperate.

66) Economic theory looks at social coordination as a process of

A) continuing mutual adjustments to the situations created by the actions of others.

B) continuous adjustment of extremes to conform to the average.

C) passing information up from below and instructions or commands down from above.

D) sacrificing personal interest to the public or general interest.

E) sacrificing the public interest to self-interest.

67) Economic theory suggests

A) social order is maintained only when people act in the public interest.

B) as a rule, people cooperate more effectively when they’re selfish compared to when they’re generous.

C) a great deal of effective cooperation can occur in the presence of minimal generosity and also without a great deal of government guidance and control.

D) none of the above.

68) Your textbook authors use the urban traffic example to show

A) why economics cannot explain non-financial processes.

B) how social cooperation emerges when people act under generally accepted rules.

C) how a smooth flow of traffic can only be achieved by detailed, central planning.

D) how a smooth flow of traffic can only be achieved if people drive in the public interest.

69) The textbook presents the movement of rush-hour traffic as an example of social

A) chaos.

B) competition.

C) conflict.

D) confusion.

E) cooperation.

70) Urban traffic moves as effectively as it does because

A) all drivers have the same attitudes regarding courtesy, safety, and speed.

B) drivers are usually concentrating intently on their own narrow goals.

C) insurance does not cover all the costs of an accident.

D) drivers take other drivers’ specific goals and interests into account.

E