CH 2 test

Which of the statements best describes the communist ideal?

*A classless society in which everyone works for the common good*

Allocation means distribution.

True

GDP per capita means gross domestic product on a per person basis.

True

Under a policy of isolationism a nation would avoid international alliances and economic interactions.

True

What is an event that contributed to the motivation for Congress to pass a water-pollution control law in 1972?

a highly polluted river actually caught fire in 1969

Which of the following are disadvantages of communist economies?

a large bureaucracy a lack of consumer goods a lack of incentives to work hard and produce more a loss of individual freedom

Which country is an example of a successful transition to capitalism?

Singapore

The independent Polish labor union founded in 1980 by Lech Walsea was called

Solidarity

Which of these nations was known as "the socialist country that works?"

Sweden

The organized way a society provides for the wants and needs of its people is called a(n)

economic system.

Which economic goals are best promoted by the free market?

efficiency and freedom

The forced common ownership of factors of production and all agricultural and industrial enterprises in the Soviet Union was called

*collectivization*

The conversion of state-owned factories and other property to private owner-ships is called

*privatization*

How many paid holiday days do workers in the United Kingdom receive?

24

:: Societies embrace various economic systems to deal with the problem of scarcity.

:: In a command economy, questions of what, how, and for whom to produce are answered by the government.

:: In a market economy questions of what, how, and for whom to produce are answered by the buying and selling activity of individuals.

:: Socialism can be described as a more liberal version of a command economy.

:: Sweden moved away from tax rate

:: There are more mixed economies in the world than any other kind

Why is economic growth an important goal of the United States?

Americans have discovered that economic growth is needed to better satisfy the wants and needs of a growing population.

How do consumers exercise their power in the American economy?

By deciding what to purchase.

What conclusion can be drawn about capitalism from South Korea's economic growth in the late 20th century?

Capitalism can restore a damaged economy.

Which statement describes why the people in a nation with a command economy might resist a shift to a free market economy?

CorrectC. People who hold political power are threatened by systemic changes.

Which nation requires its doctors to live in the same building where they provide their service?

Cuba

According to CIA World Factbook 2013 which of the following nations has the highest GDP per capita?

Denmark

The minimum wage is an example of a federal law that supports which economic goal?

Economic equity

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

Which of the following is a disadvantage of a market economy?

It sustains a high degree of uncertainty

Who is the author of The Communist Manifesto and Das Kapital?

Karl Marx

An economy that uses a large amount of capital for every person employed is called

capital-intensive.

An economic and political system in which factors of production are collectively owned and directed by the state is called

communism

The free enterprise system of the United States is best described as a

mixed economy with limited government intervention and a great deal of economic freedom.

The shift of an economy, or part of an economy, from private ownership to government ownerships is called

nationalization

Why do people need to buy and sell products or services?

no one is self-sufficient

The fundamental restructuring of the Soviet economy introduced by Mikhail Gorbachev was called

perestroika

An economic system is successful when it

satisfies the needs of its people.

An economic system in which government owns some factors of production and has a role in determining what and how goods are produced is called

socialism

The successor of the European Coal and Steel Community established in 1993 by the Maastricht Treaty is called

the European Union (EU).

The worst period of economic decline in U. S. history, lasting from 1929 to 1939 was called

the Great Depression

China's second Five-year Plan which forced collectivization of agriculture and rapid industrialization was called

the Great Leap Forward.

Which of the following describes a move away from pure capitalism?

*Economic reforms following the Great Depression in the U.S. *

Which statement describes a disadvantage of a command economy?

*Nothing stops the government from producing things that people don't need or want*

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*

What "invisible hand" regulates the free market economy?

Competition and self-interest

The central planning authority in the former Soviet Union that devised and directed Five-Year Plans was called

GOSPLAN

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-to-day business management.

Under U. S. law would a Keiretsu be legal?

No

A comprehensive, centralized economic plan used by the Soviet Union and China to coordinate developments of agriculture and industry was called

a Five-Year Plan.

An independently owned group of Japanese firms joined and governed by an external board of directors in order to regulate competition is called

a Keiretsu

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

According to CIA World Factbook which western hemisphere nation has the largest command Economy?

Venezuela

An economic system characterized by a central authority that makes most of the major economic decisions is called

a command economy.

An economic system in which supply, demand, and the price system help people make decisions and allocate resources is called

a market economy.

An entrepreneur would most likely have the best chance for success in

a market economy.

An economic system that has some combination of traditional, command, and market economies is called

a mixed economy.

An economy in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom is called

a traditional economy.

An economic system in which private citizens own and use the factors of production in order to generate profits is called

capitalism

In order to meet quotas, determined by weight, what product in the Soviet Union was made too heavy to be safely secured to the ceiling?

chandeliers

Certificates that could be used to purchase government=-owned property during privatization were called

vouchers

Who did Karl Marx believe would be the beneficiaries of socialism?

workers