Question 1

Many economists are concerned that the growing trade deficit makes the U.S. vulnerable to

Accepted Answer

A)   terrorist attacks.
B)   depression.
C)   ease.
D)   economic extortion.E) All of the above
F) A) and B)

Question 2

Which of the following accurately reflects the concept of Marxism?

Accepted Answer

A)   It is only within a capitalist economic system that workers are not alienated from the products of their labor.
B)   Only workers who are poorly paid for their labor are alienated.
C)   Within a capitalist economic system, the activity of labor is an end in itself and, as a result, has intrinsic value.
D)   Labor is alienated in a capitalist economic system (in part)  because the labor of a worker stands opposed to the worker as an autonomous power.E) A) and D)
F) B) and C)

Question 3

For employees who are paid handsomely for their efforts, Marx said their work would ultimately prove to be

Accepted Answer

A)   profitable to them.
B)   expensive to them.
C)   meaningless to them.
D)   tireless.E) A) and B)
F) B) and C)

Question 4

The capitalism that we know today in the United States is a "pure" form of laissez-faire capitalism.

Accepted Answer

A) True 
 B)False

Question 5

According to John Stuart Mill, what makes capitalism a desirable economic system is the type of worker-capitalist relationship inherent in capitalism.

Accepted Answer

A) True 
 B)False

Question 6

According to one survey of cultural values

Accepted Answer

A)   Americans value work more than Japanese do.
B)   for Americans, only good health is more important than work.
C)   Americans typically value things like their children's education and a satisfactory love life more than work.
D)   Americans place no value on work, only on money.E) A) and B)
F) A) and C)

Question 7

The profit motive

Accepted Answer

A)   is a fundamental feature of all societies.
B)   is no longer a key feature of capitalism.
C)   must be checked by competition if society is to benefit.
D)   is basically immoral.E) None of the above
F) A) and B) C

Question 8

An assessment of work in America is

Accepted Answer

A)   American manufacturing is growing faster than ever.
B)   American corporations ignore short-term performance.
C)   manufacturing still employs more people than government.
D)   many manufacturing companies have become "hollow" or "weightless".E) All of the above
F) A) and B) D

Question 9

If it's true that individuals have a natural right to own property, then there can be no limits on this right.

Accepted Answer

A) True 
 B)False

Question 10

The concept of the "invisible hand" means

Accepted Answer

A)   pursuit of private gain will bring the best overall results.
B)   although it can't be seen, the hand of government controls the economy.
C)   feudalism inevitably gives rise to capitalism.
D)   externalities must be internalized.E) A) and D)
F) B) and C)

Question 11

Capital is that money that is invested for the purpose of making more money.

Accepted Answer

A) True 
 B)False

Question 12

Utilitarians reject the very idea of a natural right to property.

Accepted Answer

A) True 
 B)False  True

Question 13

An exclusive focus on short-term performance

Accepted Answer

A)   is the best guarantee of a company's long-term performance.
B)   has helped to create a high-pressure environment conducive to fraud.
C)   encourages long-term research and development.
D)   hurts stock prices.E) A) and B)
F) All of the above

Question 14

Adam Smith claims that the people seeking self-interest in a free market through competition can benefit society as a whole.

Accepted Answer

A) True 
 B)False

Question 15

According to Adam Smith, the division of labor decreases economic activity.

Accepted Answer

A) True 
 B)False

Question 16

Which statement best describes capitalism?

Accepted Answer

A)   Capitalism is an economic system in which the means of production and distribution is in state hands.
B)   Capitalism is an economic system that operates under the profit motive.
C)   Capitalism is an economic system that dispenses with competition.
D)   Capitalism is an economic system where the profits generated belong to the state as a whole.E) None of the above
F) B) and C)

Question 17

Capitalism is possible without private property.

Accepted Answer

A) True 
 B)False

Question 18

Socialism is an economic system characterized by public ownership of the means of production and distribution, and a planned economy.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an accurate statement?

Accepted Answer

A)   Adam Smith defends capitalism by appealing to the idea of a natural, moral right to property.
B)   Adam Smith denies that human beings are, by nature, acquisitive creatures.
C)   A common defense of capitalism is the argument that people have a fundamental moral right to property and that our capitalist system is simply the outcome of this natural right.
D)   Utilitarians oppose capitalism in principle.E) C) and D)
F) A) and B)

Question 20

The U. S. trade deficit has shrunk significantly in recent decades.

Accepted Answer

A) True 
 B)False

Exam 4: The Nature of Capitalism

Many economists are concerned that the growing trade deficit makes the U.S. vulnerable to

Correct AnswerverifiedShow Answer

Which of the following accurately reflects the concept of Marxism?

Correct AnswerverifiedShow Answer

For employees who are paid handsomely for their efforts, Marx said their work would ultimately prove to be

Correct AnswerverifiedShow Answer

The capitalism that we know today in the United States is a "pure" form of laissez-faire capitalism.

Correct AnswerverifiedShow Answer

According to John Stuart Mill, what makes capitalism a desirable economic system is the type of worker-capitalist relationship inherent in capitalism.

Correct AnswerverifiedShow Answer

According to one survey of cultural values

Correct AnswerverifiedShow Answer

The profit motive

Correct AnswerverifiedC

An assessment of work in America is

Correct AnswerverifiedD

If it's true that individuals have a natural right to own property, then there can be no limits on this right.

Correct AnswerverifiedShow Answer

The concept of the "invisible hand" means

Correct AnswerverifiedShow Answer

Capital is that money that is invested for the purpose of making more money.

Correct AnswerverifiedShow Answer

Utilitarians reject the very idea of a natural right to property.

Correct AnswerverifiedTrue

An exclusive focus on short-term performance

Correct AnswerverifiedShow Answer

Adam Smith claims that the people seeking self-interest in a free market through competition can benefit society as a whole.

Correct AnswerverifiedShow Answer

According to Adam Smith, the division of labor decreases economic activity.

Correct AnswerverifiedShow Answer

Which statement best describes capitalism?

Correct AnswerverifiedShow Answer

Capitalism is possible without private property.

Correct AnswerverifiedShow Answer

Socialism is an economic system characterized by public ownership of the means of production and distribution, and a planned economy.

Correct AnswerverifiedShow Answer

Which of the following is an accurate statement?

Correct AnswerverifiedShow Answer

The U. S. trade deficit has shrunk significantly in recent decades.

Correct AnswerverifiedShow Answer

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D

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True

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