Question 1

From 1917-1921, Russia experienced a period called War Communism that essentially eliminated the market as an allocative mechanism.

Accepted Answer

A) True 
 B)False

Question 2

According to Karl Marx, if workers produce $20 worth of goods and are paid $13 in subsistence wages, then surplus value is:

Accepted Answer

A)  $7. 
B)  $13. 
C)  $20. 
D)  $33. 
A)  $7. 
B)  $13. 
C)  $20. 
D)  $33.

Question 3

Karl Marx examined a _______ process that he argued would ultimately result in the _______ of capitalism.

Accepted Answer

A)  static, stagnation 
B)  dynamic; collapse 
C)  dynamic; stagnation 
D)  historical; a peaceful elimination 
A)  static, stagnation 
B)  dynamic; collapse 
C)  dynamic; stagnation 
D)  historical; a peaceful elimination

Question 4

Describe the functioning of planning under Gosplan, the central planning agency in the former Soviet Union and the problems inherent in such a system

Accepted Answer

Under Gosplan, the central planning agen

Question 5

Which of the following statements is false?

Accepted Answer

A)  Decisions about what to produce in the former Soviet Union were made primarily by political leaders. 
B)  Soviet planners consistently set prices that were too high, and this led to severe shortages. 
C)  Soviet plant managers lacked incentives to adopt new technologies. 
D)  Soviet plant managers lacked incentives to cut costs. 
A)  Decisions about what to produce in the former Soviet Union were made primarily by political leaders. 
B)  Soviet planners consistently set prices that were too high, and this led to severe shortages. 
C)  Soviet plant managers lacked incentives to adopt new technologies. 
D)  Soviet plant managers lacked incentives to cut costs.

Question 6

According to Marx, if the wage increased above the subsistence

Accepted Answer

A)  workers would spend it lavishly. 
B)  capitalists would refuse to pay the higher wage. 
C)  the increase in the number of workers would drive the wage back down. 
D)  surplus value would rise. 
A)  workers would spend it lavishly. 
B)  capitalists would refuse to pay the higher wage. 
C)  the increase in the number of workers would drive the wage back down. 
D)  surplus value would rise.

Question 7

The theory that holds that the relative values of goods and services are ultimately determined by the quantities of labor required in their production is the:

Accepted Answer

A)  capitalism theory. 
B)  labor theory of value. 
C)  marginal productivity theory. 
D)  theory of surplus value. 
A)  capitalism theory. 
B)  labor theory of value. 
C)  marginal productivity theory. 
D)  theory of surplus value.

Question 8

Marx predicted that:

Accepted Answer

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

Question 9

To make the transition to market capitalism, former command socialist economies had to establish systems of property rights, establish banking systems, deal with the problem of inflation, and work through a long tradition of ideological antipathy toward capitalism.

Accepted Answer

A) True 
 B)False

Question 10

China's transition to market capitalism has been very rapid, and its rate of economic growth has been slow.

Accepted Answer

A) True 
 B)False

Question 11

According to Marx, profit was surplus value.

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)  introducing bank checking accounts. 
B)  taking steps to raise the inflation rate. 
C)  reducing private property rights. 
D)  eliminating all welfare programs and social safety nets. 
A)  introducing bank checking accounts. 
B)  taking steps to raise the inflation rate. 
C)  reducing private property rights. 
D)  eliminating all welfare programs and social safety nets.

Question 13

Marx predicted that:

Accepted Answer

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

Question 14

The Yugoslav economy under Tito was characterized by:

Accepted Answer

A)  persistent unemployment. 
B)  low inflation. 
C)  decreasing disparities in income levels between regions. 
D)  living standards that were quite low in comparison to other Soviet bloc countries. 
A)  persistent unemployment. 
B)  low inflation. 
C)  decreasing disparities in income levels between regions. 
D)  living standards that were quite low in comparison to other Soviet bloc countries.

Question 15

Socialism in Yugoslavia was characterized by:

Accepted Answer

A)  private ownership of all factories. 
B)  low living standards compared to the Soviet Union. 
C)  less equal income distributions than market capitalist economies. 
D)  high unemployment rates. 
A)  private ownership of all factories. 
B)  low living standards compared to the Soviet Union. 
C)  less equal income distributions than market capitalist economies. 
D)  high unemployment rates.

Question 16

Market socialism was established in Yugoslavia by:

Accepted Answer

A)  Karl Marx. 
B)  Vladimir Lenin. 
C)  Joseph Stalin. 
D)  Marshal Tito. 
A)  Karl Marx. 
B)  Vladimir Lenin. 
C)  Joseph Stalin. 
D)  Marshal Tito.

Question 17

China's economic system in the 1950s was patterned after the economic system of:

Accepted Answer

A)  the United States. 
B)  Yugoslavia. 
C)  the Soviet Union. 
D)  Cuba. 
A)  the United States. 
B)  Yugoslavia. 
C)  the Soviet Union. 
D)  Cuba.

Question 18

Because of careful planning, the former Soviet Union was able to avoid the pollution problems so evident in capitalism.

Accepted Answer

A) True 
 B)False

Question 19

The labor theory of value holds that the value of goods ultimately depends on the:

Accepted Answer

A)  demand and supply of labor translated into prices. 
B)  relative amount of labor used in their production. 
C)  monopoly prices set for them by monopolists. 
D)  labor being used in the market place, but value must also be a result of the interaction of demand and supply in the long run. 
A)  demand and supply of labor translated into prices. 
B)  relative amount of labor used in their production. 
C)  monopoly prices set for them by monopolists. 
D)  labor being used in the market place, but value must also be a result of the interaction of demand and supply in the long run.

Question 20

According to Karl Marx, surplus value makes it possible to have:

Accepted Answer

A)  proletariat savings. 
B)  capital accumulation. 
C)  unregulated markets. 
D)  subsistence wages. 
A)  proletariat savings. 
B)  capital accumulation. 
C)  unregulated markets. 
D)  subsistence wages.

From 1917-1921, Russia experienced a period called War Communism that essentially eliminated the market as an allocative mechanism.

According to Karl Marx, if workers produce $20 worth of goods and are paid $13 in subsistence wages, then surplus value is:

Karl Marx examined a _ process that he argued would ultimately result in the _ of capitalism.

Describe the functioning of planning under Gosplan, the central planning agency in the former Soviet Union and the problems inherent in such a system

Which of the following statements is false?

According to Marx, if the wage increased above the subsistence

The theory that holds that the relative values of goods and services are ultimately determined by the quantities of labor required in their production is the:

Marx predicted that:

To make the transition to market capitalism, former command socialist economies had to establish systems of property rights, establish banking systems, deal with the problem of inflation, and work through a long tradition of ideological antipathy toward capitalism.

China's transition to market capitalism has been very rapid, and its rate of economic growth has been slow.

According to Marx, profit was surplus value.

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

Marx predicted that:

The Yugoslav economy under Tito was characterized by:

Socialism in Yugoslavia was characterized by:

Market socialism was established in Yugoslavia by:

China's economic system in the 1950s was patterned after the economic system of:

Because of careful planning, the former Soviet Union was able to avoid the pollution problems so evident in capitalism.

The labor theory of value holds that the value of goods ultimately depends on the:

According to Karl Marx, surplus value makes it possible to have:

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

From 1917-1921, Russia experienced a period called War Communism that essentially eliminated the market as an allocative mechanism.

According to Karl Marx, if workers produce $20 worth of goods and are paid $13 in subsistence wages, then surplus value is:

Karl Marx examined a _______ process that he argued would ultimately result in the _______ of capitalism.

Describe the functioning of planning under Gosplan, the central planning agency in the former Soviet Union and the problems inherent in such a system

Which of the following statements is false?

According to Marx, if the wage increased above the subsistence

The theory that holds that the relative values of goods and services are ultimately determined by the quantities of labor required in their production is the:

Marx predicted that:

To make the transition to market capitalism, former command socialist economies had to establish systems of property rights, establish banking systems, deal with the problem of inflation, and work through a long tradition of ideological antipathy toward capitalism.

China's transition to market capitalism has been very rapid, and its rate of economic growth has been slow.

According to Marx, profit was surplus value.

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

Marx predicted that:

The Yugoslav economy under Tito was characterized by:

Socialism in Yugoslavia was characterized by:

Market socialism was established in Yugoslavia by:

China's economic system in the 1950s was patterned after the economic system of:

Because of careful planning, the former Soviet Union was able to avoid the pollution problems so evident in capitalism.

The labor theory of value holds that the value of goods ultimately depends on the:

According to Karl Marx, surplus value makes it possible to have:

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

Karl Marx examined a _ process that he argued would ultimately result in the _ of capitalism.