Question 1

As it relates to reform in former Soviet countries, privatization means:

Accepted Answer

A)  selling publicly owned property to private buyers. 
B)  demonopolization of state industry. 
C)  price liberalization. 
D)  controlling the private section. 
A)  selling publicly owned property to private buyers. 
B)  demonopolization of state industry. 
C)  price liberalization. 
D)  controlling the private section.

Question 2

Marx called the difference between the price of a good or service and its labor cost its:

Accepted Answer

A)  profit. 
B)  surplus value. 
C)  excess price. 
D)  subsistence wage. 
A)  profit. 
B)  surplus value. 
C)  excess price. 
D)  subsistence wage.

Question 3

Socialism under Stalin was an economic system characterized by _______ ownership of the factors of production and allocative decisions made _______ .

Accepted Answer

A)  private; through markets 
B)  private; by the government 
C)  government; through markets 
D)  government; by the government 
A)  private; through markets 
B)  private; by the government 
C)  government; through markets 
D)  government; by the government

Question 4

China's Great Leap Forward was considered to be:

Accepted Answer

A)  an unqualified success. 
B)  good for small farmers. 
C)  good for consumers, but not as good for producers. 
D)  an economic disaster. 
A)  an unqualified success. 
B)  good for small farmers. 
C)  good for consumers, but not as good for producers. 
D)  an economic disaster.

Question 5

Marx felt that profit:

Accepted Answer

A)  was morally justified. 
B)  represented exploitation of workers by capitalists. 
C)  would increase to enormous rates, when a revolution would finally take place and capitalism would be destroyed. 
D)  represented a surplus of labor that acted to push wages down. 
A)  was morally justified. 
B)  represented exploitation of workers by capitalists. 
C)  would increase to enormous rates, when a revolution would finally take place and capitalism would be destroyed. 
D)  represented a surplus of labor that acted to push wages down.

Question 6

The essence of Karl Marx's theory of value is that:

Accepted Answer

A)  the proletariat will eventually rise and overthrow the capitalistic system. 
B)  the value of any commodity is determined by the amount of labor time used in its production. 
C)  all great political, social, intellectual, and ethical changes are based on the organization of economic systems. 
D)  the surplus value that belongs to capitalists is stolen by workers in order to expand and perpetuate the capitalistic system. 
A)  the proletariat will eventually rise and overthrow the capitalistic system. 
B)  the value of any commodity is determined by the amount of labor time used in its production. 
C)  all great political, social, intellectual, and ethical changes are based on the organization of economic systems. 
D)  the surplus value that belongs to capitalists is stolen by workers in order to expand and perpetuate the capitalistic system.

Question 7

In Marx's theory, the subsistence wages of workers are at least equal to the value of production.

Accepted Answer

A) True 
 B)False

Question 8

Marx stressed a historical approach to economics.

Accepted Answer

A) True 
 B)False

Question 9

Das Kapital was written by:

Accepted Answer

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

Question 10

According to the text, China may very well become a market capitalist economy in the not-too-distant future.

Accepted Answer

A) True 
 B)False

Question 11

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 raise the inflation rate. 
C)  expanding 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 raise the inflation rate. 
C)  expanding private property rights. 
D)  eliminating all welfare programs and social safety nets.

Question 12

Socialism in Yugoslavia was characterized by:

Accepted Answer

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

Question 13

The Communist Manifesto concludes with the sentence:

Accepted Answer

A)  "A specter is haunting Europe - the specter of communism." 
B)  "The history of all hitherto existing societies is the history of class struggles." 
C)  "What the bourgeoisie, therefore, produces, above all, is its own gravediggers." 
D)  "Working men of all countries, unite!" 
A)  "A specter is haunting Europe - the specter of communism." 
B)  "The history of all hitherto existing societies is the history of class struggles." 
C)  "What the bourgeoisie, therefore, produces, above all, is its own gravediggers." 
D)  "Working men of all countries, unite!"

Question 14

The economic performance of former Yugoslavia resulted in living standards lower than in the Soviet Union.

Accepted Answer

A) True 
 B)False

Question 15

An evaluation of centrally planned economies reveals that they:

Accepted Answer

A)  put a premium on technological innovation. 
B)  achieved a nearly equal distribution of income. 
C)  were successful in attaining economic efficiency. 
D)  experienced production rigidities and shortages. 
A)  put a premium on technological innovation. 
B)  achieved a nearly equal distribution of income. 
C)  were successful in attaining economic efficiency. 
D)  experienced production rigidities and shortages.

As it relates to reform in former Soviet countries, privatization means:

Marx called the difference between the price of a good or service and its labor cost its:

Socialism under Stalin was an economic system characterized by _ ownership of the factors of production and allocative decisions made _ .

China's Great Leap Forward was considered to be:

Marx felt that profit:

The essence of Karl Marx's theory of value is that:

In Marx's theory, the subsistence wages of workers are at least equal to the value of production.

Marx stressed a historical approach to economics.

Das Kapital was written by:

According to the text, China may very well become a market capitalist economy in the not-too-distant future.

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

Socialism in Yugoslavia was characterized by:

The Communist Manifesto concludes with the sentence:

The economic performance of former Yugoslavia resulted in living standards lower than in the Soviet Union.

An evaluation of centrally planned economies reveals that they:

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

As it relates to reform in former Soviet countries, privatization means:

Marx called the difference between the price of a good or service and its labor cost its:

Socialism under Stalin was an economic system characterized by _______ ownership of the factors of production and allocative decisions made _______ .

China's Great Leap Forward was considered to be:

Marx felt that profit:

The essence of Karl Marx's theory of value is that:

In Marx's theory, the subsistence wages of workers are at least equal to the value of production.

Marx stressed a historical approach to economics.

Das Kapital was written by:

According to the text, China may very well become a market capitalist economy in the not-too-distant future.

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

Socialism in Yugoslavia was characterized by:

The Communist Manifesto concludes with the sentence:

The economic performance of former Yugoslavia resulted in living standards lower than in the Soviet Union.

An evaluation of centrally planned economies reveals that they:

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

Socialism under Stalin was an economic system characterized by _ ownership of the factors of production and allocative decisions made _ .