New Economic Theories Answers

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1
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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.
2
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A
communism
B
socialism
C
capitalism
D
utopianism
3

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A
revolted
B
worked harder
C
obeyed
D
owned property
4

Karl Marx developed the economic theory of

A
socialism.
B
capitalism.
C
utopianism.
D
communism.
5

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.
6

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

A
dictators
B
industrialists
C
business owners
D
working classes
7

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.
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

During industrialization, which led to an exploration of new economic theories?

A
a war between socialists and capitalists
B
a gap between rich and poor
C
the seizure of property by the government
D
the fight to control businesses by individuals
10

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.

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