Question 1

Social Darwinists had a different take on the utilitarian justification for free markets.&#10;They argued that economic competition would not produce human progress.

Accepted Answer

Social Darwinists believed that economic competition was a natural process that would lead to the survival of the fittest, thereby promoting human progress and societal improvement.

Question 2

Under TRIPS, patents for new products expire after 20 years.

Accepted Answer

Under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), patents are granted for a minimum term of 20 years from the filing date.

Question 3

Locke's view that labor creates property rights has been influential in the U.S.

Accepted Answer

John Locke's theory that labor is the source of property rights has significantly influenced the development of property rights and political philosophy in the United States, particularly through its impact on the Founding Fathers and the crafting of the Constitution.

Question 4

According to Locke, the power of government should be:&#10;A) Expanded to meet the needs of all citizens.&#10;B) Expanded to meet the needs of corporations.&#10;C) Limited, extending only far enough to protect basic rights of all citizens.&#10;D) Limited, extending only far enough to protect the basic rights of corporations.

Accepted Answer

John Locke advocated for a government with limited powers, emphasizing that its primary role should be to protect the basic rights of citizens, such as life, liberty, and property.

Question 5

Smith's utilitarian argument is most commonly criticized for making what some call unrealistic arguments.&#10;A) Smith assumes that no one seller can control the price of a good.&#10;B) Smith assumes that the manufacturer will pay for all the resources used to produce a product.&#10;C) Smith assumes that humans are motivated only by a natural, self-interested desire for profit.&#10;D) All the above&#10;E) B & C

Accepted Answer

Smith's utilitarian argument is often criticized for several assumptions that are considered unrealistic by some critics. These include the assumption that no single seller can control the price of a good, implying a perfect competition scenario (A); the assumption that manufacturers will bear the cost of all resources used in production, which may overlook externalities or the shifting of costs (B); and the assumption that humans are motivated solely by self-interest in the form of profit, which may ignore other motivations such as altruism or social responsibility (C).

Question 6

According to the International Labor organization, it is estimated that 218 million children are working today.

Accepted Answer

The International Labour Organization (ILO) has reported that approximately 218 million children are engaged in child labor worldwide, highlighting the ongoing issue of child labor.

Question 7

During the financial crisis in 2008, George W. Bush asked U.S. Congress to pass legislation to create a Troubled Asset Relief Program (TARP) in the amount of .&#10;A) $1 Trillion&#10;B) $90 billion&#10;C) $ 80 billion&#10;D) $70 billion

Accepted Answer

The answer of During the financial crisis in 2008, George...

Question 8

Decisions made in a system primarily based on markets&#10;A) Private companies make the main decisions about what they will produce and who will get it.&#10;B) Land and factories are owned and managed by private individuals.&#10;C) People are motivated to work primarily by the desire to get paid for voluntarily supplying the things others are willing to pay for.&#10;D) All of the above.&#10;E) None of the above.

Accepted Answer

In a market-based system, decisions about production and distribution are made by private companies (A), land and factories are typically owned by individuals or corporations rather than the state (B), and the motivation to work and produce goods or services is driven by the desire to earn money, which is achieved by supplying what others are willing to pay for (C). Therefore, all of the provided options are characteristics of a market-based system.

Question 9

The basic problem underlying the views of the social Darwinist is the fundamental normative assumption that survival of the fittest means survival of the best.

Accepted Answer

Social Darwinism misapplies the concept of "survival of the fittest" from natural selection to justify social, political, and economic inequalities, assuming that those who succeed are inherently superior, which is a normative (value-based) judgment rather than an objective fact.

Question 10

According to Smith, when private individuals are left free to seek their own interests in free markets, they will inevitably be led to further the public welfare by an &#34;invisible hand.&#34;

Accepted Answer

Adam Smith argued that individuals pursuing their own self-interest in a free market economy would contribute to the public good as if guided by an "invisible hand," promoting efficiency and wealth distribution that benefits society as a whole.

Question 11

Modifying Locke's views on free markets, Adam Smith's arguments rest on arguments that unregulated markets and private property will produce greater benefits than any other system.&#10;A) Kantian&#10;B) Utilitarian&#10;C) Communist&#10;D) None of the above

Accepted Answer

The answer of Modifying Locke's views on free markets, Adam...

Question 12

So called primitive societies used economic systems based on .&#10;A) Small business organization.&#10;B) Tradition -based societies.&#10;C) Barter systems.&#10;D) None of the above.

Accepted Answer

The answer of So called primitive societies used economic systems...

Question 13

Many economists now advocate retaining the market system and private property while modifying their workings through government regulation. This is known as a:&#10;A) Pure capitalist economy&#10;B) Evolutionary economy&#10;C) Mixed economy&#10;D) Free market economy

Accepted Answer

The answer of Many economists now advocate retaining the market...

Question 14

Karl Marx offers the most critical view of modern private property and free market institutions. Marx claims that free-market capitalism necessarily produces:&#10;A) Extremes of inefficiency&#10;B) Extremes of efficiency&#10;C) Extremes of equality&#10;D) Extremes of inequality

Accepted Answer

The answer of Karl Marx offers the most critical view...

Question 15

Ricardo looks to which rule setter to normalize trade?&#10;A) World Trade Organization.&#10;B) World Bank.&#10;C) International Monetary Fund.&#10;D) B&C.&#10;E) None of the above.

Accepted Answer

The answer of Ricardo looks to which rule setter to...

Deck 3: The Business: Government, Markets, and International Trade