Economic Systems and Decision Making (Chapter 2 Quiz)
What conclusion can be drawn about capitalism fromSouth Korea's economic growth in the late 20th century?
Capitalism can restore a damaged economy.
Which of the following states an advantage of a traditional economy?
Everyone knows exactly what their function is
Communist countries like North Korea and Cuba are examples of mixed economies.
False
Mixed economies work to the degree that they embrace democracy.
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 1980's?
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 of the United States?
Japan's government is highly involved in day-to-day business management.
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 fundamental changes.
fundamental restructuring of the Soviet economy, introduced by President Mikhail Gorbachev
Perestroika
Which country is an example of a capitalistic country?
Singapore
How is the principle of "There's NO Such Thing As A Free Lunch" illustrate in a socialist economy?
Socialist economies tend to offer extensive government services but have high tax rates.
Which of these is an accurate statement about mixed economies?
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
Socialist economies include aspects of both command and free-enterprise systems.
True
There is always some degree of government involvement in a mixed-economy.
True
In a ______________ economy, production questions are answered by the government?
command
What kind of economy offers uniformity in wages regardless of individual productivity?
command and socialist economies
independently owned group of Japanese business firms united to regulate competition
keiretsu
In a ____________________ economy, questions of what, how, and for whom to produce are answered by the buying and selling activity of individuals?
market
Societies embrace various economic systems to deal with the fundamental problem of _____________________?
scarcity
___________________ is a system in which the government owns and controls some, but not all, productive resources.
socialism
independent Polish labor union founded in 1980 by Lech Walsea
solidarity
Which of the following describes a move away from capitalism?
the nationalization of major industries in Hugo Chavez's Venezuela
The way the 19th-century Inuit divided the "spoils of the hunt" demonstrates a __________________ economy?
traditional
Who did Karl Marx believe would be the beneficiaries of socialism?
workers
Which of the statements best describes the communist ideal?
a classless society in which everyone works for the common good