Eco Ch 2 Quizzes
Which of the following describes a move away from pure capitalism?
Economic reforms following the Great Depression in the united States.
Which of the following states an advantage of a traditional economy?
Everyone knows exactly what their function is.
Which statement describes a disadvantage of a command economy?
Nothing stops the government from producing things that people don't need or want.
Which statement describes why the people in a nation with a command economy might resist a shift to a free market economy?
People who hold political power are threatened by systemic changes.
Fundamental restructuring of the Soviet economy, introduced by President Mikhail Gorbachev
Perestroika
__________ can be described as a more liberal version of a command economy
Socialism
How is the principle of "There's No Such Thing As A Free Lunch" illustrated in a socialist economy?
Socialist economies tend to offer extensive government services but have high tax rates.
Independent Polish labor union founded in 1980 by Lech Walsea
Solidarity
In a _________ economy, questions of what, how, and for whom to produce are answered by the government.
command
In a _________ economy questions of what, how and for whom to produce are answered by the buying and selling activity of individuals.
market
Which of the statements best describes the communist ideal?
A classless society in which everyone works for the common good.
What conclusion can be drawn about capitalism from South Korea's economic growth in the late 20th century?
Capitalism can restore a damaged economy.
What kind of economy offers uniformity in wages regardless of the occupation or individual?
Command and socialist economies
Communist countries like North Korea and Cuba are examples of mixed economies.
False
Mixed economies work to the degree that they embrace democracy.
False
Socialist economies include aspects of both command and free-enterprise economies
False
Gross domestic product on a per person basis
GDP per capita
Central planning authority in the former Soviet Union
Gosplan
Which of the following is a disadvantage of a market economy?
It sustains a high degree of uncertainty.
Why did Sweden move from socialism to a more mixed economy in the 1980s?
Its citizens objected to the nation's high rate of taxation.
Which of these statements apply to present-day Sweden?
Its unemployment rate and GDP per capita are relatively high.
What is the main difference between Japanese capitalism and capitalism in the United States?
Japan's government is highly involved in day-today business management.
Independently owned group of Japanese business firms united to regulate competition
Keiretsu
Which of these is an accurate statement about mixed economies today
There are more mixed economies in the world than any other kind.
Mixed economies can evolve when societies with different kinds of economies interact
True
There is always some degree of government involvement in a mixed economy.
True
Societies embrace various economic systems to deal with the problem of
scarcity
Which country is an example of a successful transition to capitalism?
Singapore
The way in which 18th century Inuit divided the " spoils of the hunt" demonstrates the functioning of a(n) __________ economy.
traditional
Who did Karl Marx believe would be the beneficiaries of socialism?
workers