Exam 19: Economies in Transition

Socialism is correctly described by which of the following statements?

In a market economy, buyers and sellers communicate their intentions to one another through:

According to Adam Smith, what is the primary source of a nation's wealth?

Adam Smith was an advocate of:

A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:

A traditional system operates based on the self interest of buyers and sellers.

An economic system that answers the What , How , and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:

One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income and therefore goods and services produced.

In Marx's ideal state of communism there would be no haves and have-nots.

The command system relies on prices set by firms on the basis of consumer demands.

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

When the official price for goods and services is below the equilibrium price in a market, prices no longer perform their rationing function efficiently.

In a traditional economy, innovation is encouraged.

Karl Marx predicted that the exploitation of workers would cause capitalism to self-destruct.

The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets describes:

Which of the following is not a characteristic of capitalism?

In a market economy:

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:

Which of the following economic systems answers the basic economic questions by copying the previous generation?

The term "capitalism" refers to which of the following?