Economics Chapter 2
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 of the following states an advantage of a traditional economy?
Everyone knows exactly what their function is.
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
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.
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.
Which country is an example of a capitalist country?
Singapore
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 Walesa
Solidarity
there is always some degree of government involvement in a mixed economy
True
Which of the statements best describes the communist ideal?
a classless society in which everyone works for the common good
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
communist countries like North Korea and Cuba are examples of mixed economies
false
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
independent 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 or free enterprise
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
Societies embrace various economic systems to deal with the problem of
scarcity
_ is a system in which the government owns and controls some, but not all, productive resources
socialism
Which of the following describes a move away from capitalism?
the nationalization of major industries in Hugo Chavez's Venezuela
which of these is an accurate statement about mixed economies today?
there are more mixed economies in the world than any other kind
The way the 19th-century Inuit divided the "spoils of the hunt" demonstrates a _ economy.
traditional
mixed economies can evolve when societies with different kinds of economies interact.
true
socialist economies include aspect of both command and free-enterprise systems
true
Who did Karl Marx believe would be the beneficiaries of socialism?
workers
