Eco Ch 2 Quizzes

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.

Societies embrace various economic systems to deal with the problem of

scarcity

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

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

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.

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 statement describes a disadvantage of a command economy?

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

Fundamental restructuring of the Soviet economy, introduced by President Mikhail Gorbachev

Perestroika

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

Singapore

__________ 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

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

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