New Economic Theories Answers

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1
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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.
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 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
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

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.
6

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.
7

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.
8

communismsocialismcapitalismutopianism

A
communism
B
socialism
C
capitalism
D
utopianism
9

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.
10

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

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