Question 1

A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:

Accepted Answer

A)   capitalism.
B)   communism.
C)   the invisible hand.
D)   a mixed economy.

Question 2

Which of the following is true in a market economy?

Accepted Answer

A)   Central planners determine answers to the basic economic questions.
B)   Resources are used efficiently.
C)   The distribution of wealth is equal.
D)   Information for production and distribution decisions pass directly to buyers from the government.

Question 3

Which of the following is a characteristic of capitalism?

Accepted Answer

A)   equality of income
B)   government decision-making is preferred to decentralized decision-making
C)   market determination of prices and quantity
D)   government ownership of all capital

Question 4

Karl Marx published:

Accepted Answer

A)   Das Kapital .
B)   General Theory of Communism .
C)   The Wealth of Nations .
D)   Capitalist Manifesto . A

Question 5

Which of the following societies is the most likely to have a traditional economy?

Accepted Answer

A)   United States
B)   the Inuit (native people of Northern Canada) 
C)   Cuba under Castro's rule
D)   modern-day Hong Kong

Question 6

Who was one of the first proponents of employing market economies instead of command economies?

Accepted Answer

A)   Robert Heilbroner.
B)   Karl Marx.
C)   Jeffrey Sachs.
D)   Adam Smith.

Question 7

In the former Soviet economy, the supreme planning board that transmitted economic decisions down to producing and consuming units was called the:

Accepted Answer

A)   Soviet Ministry.
B)   Polit Bureau.
C)   Gosplan.
D)   Soviet Central Committee for Economic Planning.

Question 8

Which of the following statements correctly characterizes nationalization in the U.S.?

Accepted Answer

A)   The U.S. does not ever follow a policy of nationalization because that would run counter to our capitalist economy.
B)   The U.S. has a history of nationalization, much of which was temporary.
C)   The U.S. has mostly nationalized industries, including Amtrak and the United States Postal Service.
D)   In times of crisis, the U.S. government has nationalized certain industries and those industries have remained permanently nationalized for the protection of the workers and consumers.

Question 9

Which of the following is a common criticism of capitalism?

Accepted Answer

A)   poor product quality and little product diversity
B)   inefficiency of nationalized industries
C)   inability to adjust quickly to changing economic conditions
D)   inadequate environmental protection

Question 10

Which of the following statements is true ?

Accepted Answer

A)   The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making.
B)   In capitalism income is distributed on the basis of need.
C)   Adam Smith was the father of socialism.
D)   Most real-world economies are mixed economic systems.

Question 11

In a market economy, buyers and sellers communicate their intentions to one another through:

Accepted Answer

A)   government planners.
B)   negotiations overseen by government agencies.
C)   elected officials.
D)   prices.

Question 12

In a socialistic system, most economic decisions are made by:

Accepted Answer

A)   firms.
B)   consumers.
C)   stockholders.
D)   government planners.

Question 13

Discuss the three basic types of economic systems.

Accepted Answer

Three basic economic systems are the tra...

Question 14

According to Adam Smith, what is the primary source of a nation's wealth?

Accepted Answer

A)   the amount of gold and silver in the government's possession
B)   a spirit of cooperation in which people share according to their means
C)   strong central planning authorities
D)   the people's ability to produce products and trade in free markets D

Question 15

The economic system that answers the What , How and For Whom questions using prices determined by the interaction of supply and demand is a:

Accepted Answer

A)   market economy.
B)   command economy
C)   soviet economy.
D)   traditional economy.

Question 16

Which of the following applies to a real-world socialistic economy?

Accepted Answer

A)   private ownership of all factors of production
B)   government ownership of all factors of production
C)   government ownership of most of the factors of production
D)   lack of central planning C

Question 17

Socialism is an economic system characterized by:

Accepted Answer

A)   private ownership of resources and market decision-making.
B)   government ownership of resources and centralized decision-making.
C)   cooperation, sharing, and little central government.
D)   a complex structure of rules and traditions that dictates decision-making.

Question 18

Which of the following is a correct characterization of socialism?

Accepted Answer

A)   Tradition answers the basic economic questions.
B)   Markets are used exclusively to answer the basic economic questions.
C)   Central planning is seldom used to answer the basic economic questions.
D)   Government ownership of many resources and centralized decision-making answers the basic economic questions.

Question 19

Which of the following statements is not one of the factors leading to the Russian economy transitioning toward capitalism?

Accepted Answer

A)   allowing private ownership of factors of production
B)   ability for individuals to earn profits
C)   allowing supply and demand to set higher prices for basic consumer goods
D)   restrictive regulations and licensing requirements for businesses

Question 20

What is the difference between socialism and communism? What are some examples of countries that are largely socialistic and some that are communistic?

Accepted Answer

Communism is a socialist economic system...

Exam 22: Economies in Transition

A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:

Correct AnswerverifiedShow Answer

Which of the following is true in a market economy?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of capitalism?

Correct AnswerverifiedShow Answer

Karl Marx published:

Correct AnswerverifiedA

Which of the following societies is the most likely to have a traditional economy?

Correct AnswerverifiedShow Answer

Who was one of the first proponents of employing market economies instead of command economies?

Correct AnswerverifiedShow Answer

In the former Soviet economy, the supreme planning board that transmitted economic decisions down to producing and consuming units was called the:

Correct AnswerverifiedShow Answer

Which of the following statements correctly characterizes nationalization in the U.S.?

Correct AnswerverifiedShow Answer

Which of the following is a common criticism of capitalism?

Correct AnswerverifiedShow Answer

Which of the following statements is true ?

Correct AnswerverifiedShow Answer

In a market economy, buyers and sellers communicate their intentions to one another through:

Correct AnswerverifiedShow Answer

In a socialistic system, most economic decisions are made by:

Correct AnswerverifiedShow Answer

Discuss the three basic types of economic systems.

Correct AnswerverifiedThree basic economic systems are the tra...View AnswerShow Answer

According to Adam Smith, what is the primary source of a nation's wealth?

Correct AnswerverifiedD

The economic system that answers the What , How and For Whom questions using prices determined by the interaction of supply and demand is a:

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Which of the following applies to a real-world socialistic economy?

Correct AnswerverifiedC

Socialism is an economic system characterized by:

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Which of the following is a correct characterization of socialism?

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Which of the following statements is not one of the factors leading to the Russian economy transitioning toward capitalism?

Correct AnswerverifiedShow Answer

What is the difference between socialism and communism? What are some examples of countries that are largely socialistic and some that are communistic?

Correct AnswerverifiedCommunism is a socialist economic system...View AnswerShow Answer

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Three basic economic systems are the tra...
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D

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C

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Communism is a socialist economic system...
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