Economic Systems and Daily Life Answers

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1
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In general, which best explains why communist revolutions did not happen?

A
Workers were too tired and poor to revolt.
B
Moderate socialists were less radical.
C
Capitalist governments enacted reforms.
D
Workers were not convinced they would work.
2
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Adam Smith believed that fair prices for goods are determined in a capitalist system

A
through competition between businesses.
B
by government regulation of businesses.
C
by setting limits on imports and exports.
D
through competition between consumers.
3

Workers competed for jobs in the model factory started by Robert Owen because

A
he overpaid them.
B
he built schools.
C
he was famous.
D
he guaranteed jobs.
4

The three main ideas behind capitalism as defined by Adam Smith are

A
free markets, laissez-faire, and fair taxes.
B
competition, self interest, and laissez-faire.
C
laissez-faire, regulation, and self interest.
D
competition, free markets, and trade limits.
5

What two principles form the basis for capitalism?

A
private ownership and equal wealth
B
free markets and shared property
C
private ownership and free markets
D
free markets and government oversight
6

According to Karl Marx, the economic ideas behind socialism would lead to a

A
communist revolution.
B
socialist revolution.
C
capitalist revolution.
D
utopian revolution.
7

In a dictatorship of the proletariat, who controls the government?

A
dictators
B
industrialists
C
business owners
D
working classes
8

This excerpt is from The Wealth of Nations by Adam Smith.“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest.”

A
Businesses acting in their own interests expect something in return for their services.
B
Businesses acting in their own interests give away goods in hopes that consumers will return.
C
Businesses such as butchers, brewers, and bakers are kind hearted and help feed people dinner.
D
Businesses give away their products but want money for the services they provide.
9

Which problems arose as a result of capitalism with little government oversight? Check all that apply.An even distribution of wealth led to little competition.Businesses eventually exploited the working class.Workers who were injured on the job were not protected.There were vast inequalities between workers and owners.Worker’s unions dissolved because employee treatment improved.Big companies drove small companies out of business.

A
An even distribution of wealth led to little competition.
B
Businesses eventually exploited the working class.
C
Workers who were injured on the job were not protected.
D
There were vast inequalities between workers and owners.
E
Worker’s unions dissolved because employee treatment improved.
F
Big companies drove small companies out of business.
10

Karl Marx developed the economic theory of

A
socialism.
B
capitalism.
C
utopianism.
D
communism.

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