Question 1

The Great Leap Forward was an economic disaster for China.

Accepted Answer

A) True 
 B)False

Question 2

China's system of contracting all decisions to households is called:

Accepted Answer

A)  bao gan dao hu. 
B)  mao zedong. 
C)  zhao ziyang. 
D)  li bao. 
A)  bao gan dao hu. 
B)  mao zedong. 
C)  zhao ziyang. 
D)  li bao.

Question 3

Decisions in the former Soviet Union led to inefficiency in part because consumer preferences were ignored.

Accepted Answer

A) True 
 B)False

Question 4

The Communist Manifesto predicted the:

Accepted Answer

A)  breakup of the Soviet Union. 
B)  globalization of capitalism. 
C)  division of society into numerous hostile camps. 
D)  fall of communism. 
A)  breakup of the Soviet Union. 
B)  globalization of capitalism. 
C)  division of society into numerous hostile camps. 
D)  fall of communism.

Question 5

Socialism in Yugoslavia was characterized by:

Accepted Answer

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

Question 6

From 1921-1924, Russia experienced a period called the New Economic Policy, which essentially was a return to the market as an allocative mechanism.

Accepted Answer

A) True 
 B)False

Question 7

The price of a good, according to Marx, equaled the sum of _______ and the _______ resulting from production of the good.

Accepted Answer

A)  capital costs; profits 
B)  a return to labor; surplus value 
C)  prices of factors; surplus value 
D)  intermediate prices; costs 
A)  capital costs; profits 
B)  a return to labor; surplus value 
C)  prices of factors; surplus value 
D)  intermediate prices; costs

Question 8

The Russian term for restructuring is:

Accepted Answer

A)  perestroika. 
B)  gorbachev. 
C)  ziyang. 
D)  gosplan. 
A)  perestroika. 
B)  gorbachev. 
C)  ziyang. 
D)  gosplan.

Question 9

Decisions in the former Soviet Union led to inefficiency, because:

Accepted Answer

A)  planners incorporated consumer preferences into their decisions. 
B)  planners did not incorporate costs of all the factors of production in their decisions. 
C)  the market was not completely abandoned. 
D)  the market was overutilized. 
A)  planners incorporated consumer preferences into their decisions. 
B)  planners did not incorporate costs of all the factors of production in their decisions. 
C)  the market was not completely abandoned. 
D)  the market was overutilized.

Question 10

According to Marx's interpretation of history, political forces outweigh economic ones as the main cause of change.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the relative successes and failures of Russia and China in their efforts to make the transition to market capitalism. Include in your answer an explanation of the different approaches and their different outcomes to date.

Accepted Answer

The transition to market capitalism in R

Question 12

The political arm of command socialism was the Communist Party.

Accepted Answer

A) True 
 B)False

Question 13

Marx held that, ultimately, the price of a good or service:

Accepted Answer

A)  equaled a return to labor plus a profit: 
B)  was determined by the intersection of demand and supply. 
C)  was determined by the competing interests in the marketplace. 
D)  equaled wages minus surplus value. 
A)  equaled a return to labor plus a profit: 
B)  was determined by the intersection of demand and supply. 
C)  was determined by the competing interests in the marketplace. 
D)  equaled wages minus surplus value.

Question 14

One method of privatization used by command socialist economies in the transition to free markets is to:

Accepted Answer

A)  establish a system of money and capital markets. 
B)  allow the central bank to regulate the money supply. 
C)  give away ownership shares for all government property. 
D)  sell domestic currency on the foreign exchange market. 
A)  establish a system of money and capital markets. 
B)  allow the central bank to regulate the money supply. 
C)  give away ownership shares for all government property. 
D)  sell domestic currency on the foreign exchange market.

Question 15

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

Accepted Answer

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

Question 16

Following the collapse of the command socialist system in 1991, prices in Russia:

Accepted Answer

A)  increased by as much as 10-fold in 6 months. 
B)  shot up because banks made too many loans and increased the money supply too much. 
C)  increased rapidly during the transition because price floors had been set too low; once price liberalization began, they subsequently rose very rapidly. 
D)  fell as fear of the future led Russian consumers to reduce their consumption. 
A)  increased by as much as 10-fold in 6 months. 
B)  shot up because banks made too many loans and increased the money supply too much. 
C)  increased rapidly during the transition because price floors had been set too low; once price liberalization began, they subsequently rose very rapidly. 
D)  fell as fear of the future led Russian consumers to reduce their consumption.

Question 17

A micro-level problem of Russia's transition has been

Accepted Answer

A)  high inflation. 
B)  high unemployment. 
C)  lack of encouragement of entrepreneurship. 
D)  lack of corruption. 
A)  high inflation. 
B)  high unemployment. 
C)  lack of encouragement of entrepreneurship. 
D)  lack of corruption.

Question 18

According to Marx, the value of a commodity is determined:

Accepted Answer

A)  exclusively by the labor required to produce it. 
B)  exclusively by capitalists. 
C)  exclusively by its demand. 
D)  by both labor and demand. 
A)  exclusively by the labor required to produce it. 
B)  exclusively by capitalists. 
C)  exclusively by its demand. 
D)  by both labor and demand.

Question 19

According to Karl Marx:

Accepted Answer

A)  the surplus value that belongs to capitalists is stolen by workers. 
B)  political forces are the prime cause of fundamental historical change. 
C)  entrepreneurs will eventually rise and overthrow the capitalistic system. 
D)  the value of any commodity is determined by the amount of labor time used in its production. 
A)  the surplus value that belongs to capitalists is stolen by workers. 
B)  political forces are the prime cause of fundamental historical change. 
C)  entrepreneurs will eventually rise and overthrow the capitalistic system. 
D)  the value of any commodity is determined by the amount of labor time used in its production.

Question 20

The Case in Point on socialist cartoons suggests that Soviet citizens recognized that:

Accepted Answer

A)  inefficiency resulted because of failure to take in costs of production. 
B)  it was difficult for businesses to incorporate new technologies in a command economy. 
C)  their system of a command economy failed to respond to consumers' demands. 
D)  all of the above 
A)  inefficiency resulted because of failure to take in costs of production. 
B)  it was difficult for businesses to incorporate new technologies in a command economy. 
C)  their system of a command economy failed to respond to consumers' demands. 
D)  all of the above

The Great Leap Forward was an economic disaster for China.

China's system of contracting all decisions to households is called:

Decisions in the former Soviet Union led to inefficiency in part because consumer preferences were ignored.

The Communist Manifesto predicted the:

Socialism in Yugoslavia was characterized by:

From 1921-1924, Russia experienced a period called the New Economic Policy, which essentially was a return to the market as an allocative mechanism.

The price of a good, according to Marx, equaled the sum of _ and the _ resulting from production of the good.

The Russian term for restructuring is:

Decisions in the former Soviet Union led to inefficiency, because:

According to Marx's interpretation of history, political forces outweigh economic ones as the main cause of change.

Discuss the relative successes and failures of Russia and China in their efforts to make the transition to market capitalism. Include in your answer an explanation of the different approaches and their different outcomes to date.

The political arm of command socialism was the Communist Party.

Marx held that, ultimately, the price of a good or service:

One method of privatization used by command socialist economies in the transition to free markets is to:

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

Following the collapse of the command socialist system in 1991, prices in Russia:

A micro-level problem of Russia's transition has been

According to Marx, the value of a commodity is determined:

According to Karl Marx:

The Case in Point on socialist cartoons suggests that Soviet citizens recognized that:

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

The Great Leap Forward was an economic disaster for China.

China's system of contracting all decisions to households is called:

Decisions in the former Soviet Union led to inefficiency in part because consumer preferences were ignored.

The Communist Manifesto predicted the:

Socialism in Yugoslavia was characterized by:

From 1921-1924, Russia experienced a period called the New Economic Policy, which essentially was a return to the market as an allocative mechanism.

The price of a good, according to Marx, equaled the sum of _______ and the _______ resulting from production of the good.

The Russian term for restructuring is:

Decisions in the former Soviet Union led to inefficiency, because:

According to Marx's interpretation of history, political forces outweigh economic ones as the main cause of change.

Discuss the relative successes and failures of Russia and China in their efforts to make the transition to market capitalism. Include in your answer an explanation of the different approaches and their different outcomes to date.

The political arm of command socialism was the Communist Party.

Marx held that, ultimately, the price of a good or service:

One method of privatization used by command socialist economies in the transition to free markets is to:

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

Following the collapse of the command socialist system in 1991, prices in Russia:

A micro-level problem of Russia's transition has been

According to Marx, the value of a commodity is determined:

According to Karl Marx:

The Case in Point on socialist cartoons suggests that Soviet citizens recognized that:

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

The price of a good, according to Marx, equaled the sum of _ and the _ resulting from production of the good.