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