New Economic Theories Answers

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1
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As economic theories, socialism and communism sought to

A
encourage private ownership of businesses.
B
even out inequalities of wealth.
C
encourage little government oversight.
D
build housing and schools for workers.
2
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In a dictatorship of the proletariat, who controls the government?

A
dictators
B
industrialists
C
business owners
D
working classes
3

What moderate reforms did European socialists support? Check all that apply.assistance for the poorworking class revolutionbetter working conditionslack of protections for unionsminimum wage lawslack of regulation for prices

A
assistance for the poor
B
working class revolution
C
better working conditions
D
lack of protections for unions
E
minimum wage laws
F
lack of regulation for prices
4

communismsocialismcapitalismutopianism

A
communism
B
socialism
C
capitalism
D
utopianism
5

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.
6

In terms of production, what best describes the difference between capitalism and socialism?

A
Capitalism is a system in which goods are made by private businesses, but socialism stresses government control over production.
B
Capitalism is a system in which the government controls production, but socialism stresses production by private businesses.
C
Capitalism is a system in which people pursue their own self-interests, but socialism stresses an equal distribution of wealth.
D
Capitalism is a system in which government should “plan” the economy, but socialism stresses that free market dictates production.
7

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.
8

In a free market, supply and demand determines

A
the type and number of goods produced.
B
the number and distribution of goods produced.
C
the raw materials and tools used to produce goods.
D
the factories and machines used to produce goods.
9

revoltedworked harderobeyedowned property

A
revolted
B
worked harder
C
obeyed
D
owned property
10

Which best explains how a mixed economy addressed problems that arose from capitalism?

A
Laissez-faire principles remained, but government passed laws promoting worker safety.
B
Government interference continued, and new laws allowed workers to own companies.
C
Supply and demand remained, and government took control of the means of production.
D
Government regulation was minimal, but new laws protected workers and their standard of living.

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