Exam 22: Economies in Transition

Describe the differences between capitalism and socialism.

An economic system characterized by private ownership of the factor of production and economic activity coordinated through a system of markets and prices is called:

The basic characteristics of a pure capitalist system include the private ownership of the means of production and economic activity being coordinated through a system of markets and prices.

The economic system characterized by private ownership of resources and market is:

Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?

In the former Soviet economy, the supreme planning board that transmitted economic decisions down to producing and consuming units was called the:

The father of modern economics that wrote The Wealth of Nations is:

Most of the world's economies are mixed economies because ____.

Karl Marx's massive work, titled Das Kapital , was published in 1848.

Which of the following statements is true ?

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

The economic system that answers the What, How and For Whom questions by central authority is a:

Adam Smith wrote that the:

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

Which of the following is not a characteristic of capitalism?

In a command economy, resources are publicly owned by government and economic activity is coordinated through a central government planning authority.

Government involvement has become so prevalent in the U.S. economy that the U.S. economy is now generally considered to be a socialist economy.

In traditional economies, people base economic decisions on the precedents established by previous generations.

In Adam Smith's competitive market economy, the question of what goods to produce is determined by:

Which of the following is one common criticism of capitalism?