Socialism and Communism — Unit test Answers

The single greatest benefit that capitalism provides is that it enables human choice. Capitalism establishes a social contract that makes it possible for individuals to exercise their franchise and free agency. It gives people the ability to be secure in themselves and their possessions and, having provided security, it enables people to assume risk that they were previously unwilling to assume. It creates the necessary conditions for people to escape poverty and create wealth for themselves and

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In a republic, elected officials create laws to regulate the economy.

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A pure market economy is sometimes called pure

According to Adam Smith, drives businesses to make their prices attractive to consumers.

The government has the right to own all land, buildings, and factories in a

Why is communism often referred to as Marxism?

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In a capitalist system, the ideology is that people who work hard are rewarded. Why do socialists criticize this approach?

What role do government agencies play in a mixed market economy?

What are the cons of a mixed market economy for most citizens? Select four answers.There may be a sizable gap between rich and poor people.It can be very difficult for citizens to start private businesses.Citizens must pay for most basic necessities by themselves.There is no guarantee of steady employment for many citizens.Citizens may pay higher taxes than in other economic systems.Citizens often purchase their own health care and higher education.

Wealth brings with it its own checks and balances. The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. . . . make equal laws: secure life and property, and you need not give charity. Open the doors of opportunity to talent and virtue, and they will do themselves justice, and property will not be in bad hands. In a free and just commonwealth, property rushes from the idle [lazy] and brainless, to the i

In a free market, the price of goods is set by

What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Private ownership provides land or goods for all citizens to use.Private ownership can make it possible for a business to earn money.Private ownership might help a person move to another economic class.Private ownership allows a person to own goods that may increase in value.