Question 1

Black markets tend to emerge when prices are controlled by government.

Accepted Answer

A) True 
 B)False

Question 2

One of the most difficult problems for Russia during its transition to market capitalism has been its inability to:

Accepted Answer

A)  increase the money supply when needed. 
B)  collect tax revenues. 
C)  privatize. 
D)  buy oil at low prices. 
A)  increase the money supply when needed. 
B)  collect tax revenues. 
C)  privatize. 
D)  buy oil at low prices.

Question 3

The economy of China has been very slow to grow during its economic transition to market capitalism.

Accepted Answer

A) True 
 B)False

Question 4

The leaders of the former Soviet economies have a difficult time before them in implementing transition in part because there is no historical precedent for them to follow.

Accepted Answer

A) True 
 B)False

Question 5

The former Soviet Union was characterized by outdated technologies, prices set too low, and persistent shortages.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not included among reasons for the difficulty of Russia's transition to a market capitalist system?

Accepted Answer

A)  Russians lived under command socialism for a short time. 
B)  Russia lacked historical experience with market capitalism. 
C)  Russia did not institute its reforms in a coherent manner. 
D)  The Russian federal government has not been effective in collecting taxes. 
A)  Russians lived under command socialism for a short time. 
B)  Russia lacked historical experience with market capitalism. 
C)  Russia did not institute its reforms in a coherent manner. 
D)  The Russian federal government has not been effective in collecting taxes.

Question 7

Marx predicted that:

Accepted Answer

A)  profit rates would fall. 
B)  wage rates would rise. 
C)  labor's share of total income in market economies would rise. 
D)  business cycles would become more stable. 
A)  profit rates would fall. 
B)  wage rates would rise. 
C)  labor's share of total income in market economies would rise. 
D)  business cycles would become more stable.

Question 8

According to Marx, surplus value is:

Accepted Answer

A)  taken away from workers by capitalists. 
B)  taken away from capitalists by workers. 
C)  used by workers to invest in capital. 
D)  used by capitalists to provide fringe benefits to workers. 
A)  taken away from workers by capitalists. 
B)  taken away from capitalists by workers. 
C)  used by workers to invest in capital. 
D)  used by capitalists to provide fringe benefits to workers.

Question 9

Checking accounts were seldom or never used in command socialist economies.

Accepted Answer

A) True 
 B)False

Question 10

Central planning proved to be a failure in communist countries in part because of:

Accepted Answer

A)  abundant market information. 
B)  unquestioned reliance on the price system. 
C)  insufficient use of government ownership. 
D)  inadequate rewards for innovation. 
A)  abundant market information. 
B)  unquestioned reliance on the price system. 
C)  insufficient use of government ownership. 
D)  inadequate rewards for innovation.

Question 11

Marx stressed that price was equal to a return to labor plus a profit.

Accepted Answer

A) True 
 B)False

Question 12

The problems encountered by transitional economies trying to become well-functioning market economies involve:

Accepted Answer

A)  eliminating bank checking accounts in favor of paper currency. 
B)  taking steps to reduce the inflation rate. 
C)  reducing private property rights. 
D)  eliminating all welfare programs and social safety nets. 
A)  eliminating bank checking accounts in favor of paper currency. 
B)  taking steps to reduce the inflation rate. 
C)  reducing private property rights. 
D)  eliminating all welfare programs and social safety nets.

Question 13

China's transition to market capitalism has been characterized by:

Accepted Answer

A)  rapid change. 
B)  free market exchanges for all production. 
C)  rapid economic growth. 
D)  increasingly centralized decisionmaking. 
A)  rapid change. 
B)  free market exchanges for all production. 
C)  rapid economic growth. 
D)  increasingly centralized decisionmaking.

Question 14

Prices in Russia soon after the collapse of the former Soviet Union increased by 10-fold in 6 months.

Accepted Answer

A) True 
 B)False

Question 15

Managers of state-owned firms in the former Soviet Union were rewarded by:

Accepted Answer

A)  huge profits. 
B)  a system of rewards based on the meeting of quotas established for the firms. 
C)  a scheme that provided incentives to reduce costs. 
D)  a scheme that provided incentives to introduce new technologies. 
A)  huge profits. 
B)  a system of rewards based on the meeting of quotas established for the firms. 
C)  a scheme that provided incentives to reduce costs. 
D)  a scheme that provided incentives to introduce new technologies.

Question 16

According to Karl Marx, the payment just high enough to enable the working population to sustain itself is:

Accepted Answer

A)  interest. 
B)  surplus value. 
C)  economic profit. 
D)  the subsistence wage. 
A)  interest. 
B)  surplus value. 
C)  economic profit. 
D)  the subsistence wage.

Question 17

In the late 1800s and early 1900s, socialist thinking was rooted in the works of:

Accepted Answer

A)  Karl Marx. 
B)  Adam Smith. 
C)  David Ricardo. 
D)  Thomas Malthus. 
A)  Karl Marx. 
B)  Adam Smith. 
C)  David Ricardo. 
D)  Thomas Malthus.

Question 18

According to Karl Marx:

Accepted Answer

A)  the surplus value that belongs to workers is appropriated by capitalists. 
B)  political forces are the prime cause of fundamental historical change. 
C)  the bourgeoisie will eventually rise and overthrow the capitalistic system. 
D)  the value of any commodity is determined by the opportunity costs of all factors of production. 
A)  the surplus value that belongs to workers is appropriated by capitalists. 
B)  political forces are the prime cause of fundamental historical change. 
C)  the bourgeoisie will eventually rise and overthrow the capitalistic system. 
D)  the value of any commodity is determined by the opportunity costs of all factors of production.

Question 19

Marx believed that there would be a peaceful transition to capitalism.

Accepted Answer

A) True 
 B)False

Question 20

The Central Agency was the name of the top planning group in the former Soviet Union.

Accepted Answer

A) True 
 B)False

Black markets tend to emerge when prices are controlled by government.

One of the most difficult problems for Russia during its transition to market capitalism has been its inability to:

The economy of China has been very slow to grow during its economic transition to market capitalism.

The leaders of the former Soviet economies have a difficult time before them in implementing transition in part because there is no historical precedent for them to follow.

The former Soviet Union was characterized by outdated technologies, prices set too low, and persistent shortages.

Which of the following is not included among reasons for the difficulty of Russia's transition to a market capitalist system?

Marx predicted that:

According to Marx, surplus value is:

Checking accounts were seldom or never used in command socialist economies.

Central planning proved to be a failure in communist countries in part because of:

Marx stressed that price was equal to a return to labor plus a profit.

The problems encountered by transitional economies trying to become well-functioning market economies involve:

China's transition to market capitalism has been characterized by:

Prices in Russia soon after the collapse of the former Soviet Union increased by 10-fold in 6 months.

Managers of state-owned firms in the former Soviet Union were rewarded by:

According to Karl Marx, the payment just high enough to enable the working population to sustain itself is:

In the late 1800s and early 1900s, socialist thinking was rooted in the works of:

According to Karl Marx:

Marx believed that there would be a peaceful transition to capitalism.

The Central Agency was the name of the top planning group in the former Soviet Union.

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Filters

Exam 20: Socialist Economies in Transition

Black markets tend to emerge when prices are controlled by government.

One of the most difficult problems for Russia during its transition to market capitalism has been its inability to:

The economy of China has been very slow to grow during its economic transition to market capitalism.

The leaders of the former Soviet economies have a difficult time before them in implementing transition in part because there is no historical precedent for them to follow.

The former Soviet Union was characterized by outdated technologies, prices set too low, and persistent shortages.

Which of the following is not included among reasons for the difficulty of Russia's transition to a market capitalist system?

Marx predicted that:

According to Marx, surplus value is:

Checking accounts were seldom or never used in command socialist economies.

Central planning proved to be a failure in communist countries in part because of:

Marx stressed that price was equal to a return to labor plus a profit.

The problems encountered by transitional economies trying to become well-functioning market economies involve:

China's transition to market capitalism has been characterized by:

Prices in Russia soon after the collapse of the former Soviet Union increased by 10-fold in 6 months.

Managers of state-owned firms in the former Soviet Union were rewarded by:

According to Karl Marx, the payment just high enough to enable the working population to sustain itself is:

In the late 1800s and early 1900s, socialist thinking was rooted in the works of:

According to Karl Marx:

Marx believed that there would be a peaceful transition to capitalism.

The Central Agency was the name of the top planning group in the former Soviet Union.

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Filters