Chapter 4 Test

For the first time since the Industrial Revolution, less than _____ percent of the American workforce was employed by manufacturing

25

Which of the following is an accurate statement

A common defense of capitalism is the argument that people have a fundamental moral right to property and that our capitalist system is simply the outcome of this natural right

According to one survey of cultural values

Americans typically value things like their children's education and a satisfactory love life more than work

Which statement best describes capitalism

Capitalism is an economic system that operates under a profit motive

Capitalism is possible without private property

False

If it's true that individuals have a natural right to own property, then there can be no limits on this right

False

None of the specific measures proposed by Marx and Engels in the Communist Manifesto have been implemented in capitalist countries

False

Which statement accurately describes capitalism

In state welfare capitalism the government plays an active role in regulating economic actives in an effort to smooth out the boom-and-bust pattern of the business cycle.

Which of the following accurately reflects the concept of Marxism

Labor is alienated in a capitalist economic system (in part) because the labor of a work stands opposed to the worker as an autonomous power.

Rather than strong work ethic, a common attitude is

Me-first

How many Americans believe that "if you work hard enough, you'll make it?"

One out of three

According to Marx, when workers are alienated they are not truly free.

True

Adam smith claims that the people seeking self-interest in a free market through competition can benefit society as a whole

True

Utilitarians reject the very idea of a natural right to property.

True

Worker control application is a hybrid economic system with no marketplace and on profits

True

Some critics of capitalism believe that it rests on a flawed view of human beings because

capitalism assumes that well-being comes from greater material consumption

Marxism states

capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.

A basic tenet of capitalism is that

capitalism requires private ownership of the major means of production.

Karl Marx believed that

capitalism workers suffer from alienation

One of the key features of capitalism is

competition

Many economists are concerned that the growing trade deficit makes the U.S. vulnerable to

economic extortion

An exclusive focus on short-term performance

has helped to create a high-pressure environment conducive to fraud

The profit motive

is a fundamental feature of all societies

An assessment of work in America is

many manufacturing companies have become "hollow" or "weightless"

For employees who are paid handsomely for their efforts, Marx said their work would ultimately prove to be

meaningless to them

Which of the following historical stages of capitalism came first?

mercantile

The Fugger dynasty was an example

mercantile capitalism

The concept go the "invisible hand" means

pursuit of private gain will bring the best results

Though many jobs are outsourced, most economists believe

the economy will create new jobs in the USA

Evidence for the idea that American manufacturing is declining is

the fact that government now employs more people than manufacturing

One reason for believing that in practice capitalism fails to live up to its own ideal of competition is

we have government subsidies and productive tariffs

A basic premise of Adam Smith's invisible hand argument is

when people are left to pursue their own economic interests, disaster looms