Question 1

According to Karl Marx, the subsistence wage is the:

Accepted Answer

A)  marginal cost of production under socialism. 
B)  marginal cost of production under capitalism. 
C)  payment just high enough to enable the working population to sustain itself. 
D)  accounting profit of the bourgeoisie that enables the replacement of socialism with communism. 
A)  marginal cost of production under socialism. 
B)  marginal cost of production under capitalism. 
C)  payment just high enough to enable the working population to sustain itself. 
D)  accounting profit of the bourgeoisie that enables the replacement of socialism with communism.

Question 2

A period in the early years of the Soviet Union from 1921-1924 was called _______, which was essentially _______

Accepted Answer

A)  the New Economic Policy; the beginning of socialist planning 
B)  Lenin's last years; the beginning of socialist planning 
C)  the early communist period; an interim period of a continuation of the market system 
D)  the New Economic Policy; a partial reinstitution of the market as an allocative mechanism 
A)  the New Economic Policy; the beginning of socialist planning 
B)  Lenin's last years; the beginning of socialist planning 
C)  the early communist period; an interim period of a continuation of the market system 
D)  the New Economic Policy; a partial reinstitution of the market as an allocative mechanism

Question 3

Karl Marx predicted the overthrow of the capitalistic system and its replacement by a _______ system.

Accepted Answer

A)  socialist 
B)  feudalist 
C)  democratic 
D)  hedonist 
A)  socialist 
B)  feudalist 
C)  democratic 
D)  hedonist

Question 4

Which of the following describes the Communist Manifesto?

Accepted Answer

A)  It contains a call for action. 
B)  It was written less than 150 years ago. 
C)  It is Karl Marx's detailed theoretical analysis of market capitalism. 
D)  It was written solely by Karl Marx. 
A)  It contains a call for action. 
B)  It was written less than 150 years ago. 
C)  It is Karl Marx's detailed theoretical analysis of market capitalism. 
D)  It was written solely by Karl Marx.

Question 5

According to Marx, surplus value is the source of:

Accepted Answer

A)  production costs. 
B)  capitalists' profits. 
C)  the subsistence wage. 
D)  a commodity's price. 
A)  production costs. 
B)  capitalists' profits. 
C)  the subsistence wage. 
D)  a commodity's price.

Question 6

Marx's predictions and theories were wrong in most cases and had, therefore, little influence on the real world.

Accepted Answer

A) True 
 B)False

Question 7

Marx predicted that:

Accepted Answer

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

Question 8

In the evaluation of centrally planned economies, it is evident that they:

Accepted Answer

A)  placed a high priority on technology and innovation. 
B)  achieved an equal distribution of income. 
C)  experienced shortages and production rigidities. 
D)  were efficient. 
A)  placed a high priority on technology and innovation. 
B)  achieved an equal distribution of income. 
C)  experienced shortages and production rigidities. 
D)  were efficient.

Question 9

In the study of economics, free riders are defined as people or firms that consume a public good without paying for it. Given that definition, your study of command socialism, and in particular, your study of the former Soviet Union, evaluate and discuss in detail the following quote: "The collapse of the Soviet Union is an example, on a grand scale, of the logical outcome of the 'free-rider' problem."

Accepted Answer

The collapse of the Soviet Union can ind

Question 10

An explanation for why transition in Russia has been so difficult is that Russia lacked any historical experience with _______ and a _______ that it could look back on.

Accepted Answer

A)  control of the people; plan 
B)  democracy; market economy 
C)  foreign relations; strong government 
D)  economic organization; strong political system 
A)  control of the people; plan 
B)  democracy; market economy 
C)  foreign relations; strong government 
D)  economic organization; strong political system

Question 11

In the not-too-distant future, according to the text, China is likely to become a(n):

Accepted Answer

A)  underdeveloped economy. 
B)  command socialist economy. 
C)  market capitalist economy. 
D)  socialist economy. 
A)  underdeveloped economy. 
B)  command socialist economy. 
C)  market capitalist economy. 
D)  socialist economy.

Question 12

Socialism in Yugoslavia was characterized by:

Accepted Answer

A)  public ownership of factories with five or more employees. 
B)  low living standards compared to the Soviet Union. 
C)  less equal income distributions than market capitalist economies. 
D)  low unemployment rates. 
A)  public ownership of factories with five or more employees. 
B)  low living standards compared to the Soviet Union. 
C)  less equal income distributions than market capitalist economies. 
D)  low unemployment rates.

Question 13

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

Accepted Answer

A)  two tiers to its economic system. 
B)  free market exchanges for all production. 
C)  very slow economic growth. 
D)  increasingly centralized decisionmaking. 
A)  two tiers to its economic system. 
B)  free market exchanges for all production. 
C)  very slow economic growth. 
D)  increasingly centralized decisionmaking.

Question 14

The Case in Point on East Germany's transition indicated that the difficulties were largely the result of:

Accepted Answer

A)  the lack of subsidies and tax breaks for firms moving into East Germany. 
B)  lack of financial resources in West Germany. 
C)  an increase in wages despite relatively low productivity. 
D)  lack of labor mobility between Germany and other central European countries. 
A)  the lack of subsidies and tax breaks for firms moving into East Germany. 
B)  lack of financial resources in West Germany. 
C)  an increase in wages despite relatively low productivity. 
D)  lack of labor mobility between Germany and other central European countries.

Question 15

Socialism, as an organizing principle for a national economy, is in large part the product of the ideas of:

Accepted Answer

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

Question 16

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 long time. 
B)  Russia lacked historical experience with market capitalism. 
C)  Russia instituted 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 long time. 
B)  Russia lacked historical experience with market capitalism. 
C)  Russia instituted its reforms in a coherent manner. 
D)  The Russian federal government has not been effective in collecting taxes.

Question 17

According to Karl Marx, capital accumulation is possible through:

Accepted Answer

A)  saving. 
B)  interest. 
C)  surplus value. 
D)  entrepreneurship. 
A)  saving. 
B)  interest. 
C)  surplus value. 
D)  entrepreneurship.

Question 18

Karl Marx would most likely agree with the statement that:

Accepted Answer

A)  class struggle is a recent phenomenon. 
B)  labor and management are naturally inclined to cooperate. 
C)  capitalism will eventually be replaced with socialism. 
D)  labor is only one factor contributing to the value of a product. 
A)  class struggle is a recent phenomenon. 
B)  labor and management are naturally inclined to cooperate. 
C)  capitalism will eventually be replaced with socialism. 
D)  labor is only one factor contributing to the value of a product.

Question 19

The labor theory of value was a unique contribution of Karl Marx.

Accepted Answer

A) True 
 B)False

Question 20

Karl Marx's argument that the value of any commodity is determined by the amount of labor time used in its production is the essence of:

Accepted Answer

A)  the labor theory of value. 
B)  his perspective on the class struggle between industrial workers and craftsmen. 
C)  the economic interpretation of history. 
D)  his theory that surplus value and capital accumulation are irrelevant. 
A)  the labor theory of value. 
B)  his perspective on the class struggle between industrial workers and craftsmen. 
C)  the economic interpretation of history. 
D)  his theory that surplus value and capital accumulation are irrelevant.

According to Karl Marx, the subsistence wage is the:

A period in the early years of the Soviet Union from 1921-1924 was called _, which was essentially _

Karl Marx predicted the overthrow of the capitalistic system and its replacement by a _______ system.

Which of the following describes the Communist Manifesto?

According to Marx, surplus value is the source of:

Marx's predictions and theories were wrong in most cases and had, therefore, little influence on the real world.

Marx predicted that:

In the evaluation of centrally planned economies, it is evident that they:

An explanation for why transition in Russia has been so difficult is that Russia lacked any historical experience with _ and a _ that it could look back on.

In the not-too-distant future, according to the text, China is likely to become a(n):

Socialism in Yugoslavia was characterized by:

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

The Case in Point on East Germany's transition indicated that the difficulties were largely the result of:

Socialism, as an organizing principle for a national economy, is in large part the product of the ideas of:

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

According to Karl Marx, capital accumulation is possible through:

Karl Marx would most likely agree with the statement that:

The labor theory of value was a unique contribution of Karl Marx.

Karl Marx's argument that the value of any commodity is determined by the amount of labor time used in its production is the essence of:

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

According to Karl Marx, the subsistence wage is the:

A period in the early years of the Soviet Union from 1921-1924 was called _______, which was essentially _______

Karl Marx predicted the overthrow of the capitalistic system and its replacement by a _______ system.

Which of the following describes the Communist Manifesto?

According to Marx, surplus value is the source of:

Marx's predictions and theories were wrong in most cases and had, therefore, little influence on the real world.

Marx predicted that:

In the evaluation of centrally planned economies, it is evident that they:

An explanation for why transition in Russia has been so difficult is that Russia lacked any historical experience with _______ and a _______ that it could look back on.

In the not-too-distant future, according to the text, China is likely to become a(n):

Socialism in Yugoslavia was characterized by:

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

The Case in Point on East Germany's transition indicated that the difficulties were largely the result of:

Socialism, as an organizing principle for a national economy, is in large part the product of the ideas of:

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

According to Karl Marx, capital accumulation is possible through:

Karl Marx would most likely agree with the statement that:

The labor theory of value was a unique contribution of Karl Marx.

Karl Marx's argument that the value of any commodity is determined by the amount of labor time used in its production is the essence of:

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

A period in the early years of the Soviet Union from 1921-1924 was called _, which was essentially _

An explanation for why transition in Russia has been so difficult is that Russia lacked any historical experience with _ and a _ that it could look back on.