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