Deck 4: The Nature of Capitalism

Question 1

Unlike other species, we have an almost constant need for

A)Companionship
B)The assistance of others
C)Trading
D)Luxury goods

Answer 1

B

Question 2

The two types of criticism that capitalism is subject to are

A)Theoretical and moral
B)Theoretical and operational
C)Operational and practical
D)Practical and substantive

Answer 2

B

Question 3

The type of capitalism that was ushered in during the Great Depression is

A)State welfare capitalism
B)Monopoly capitalism
C)Industrial capitalism
D)Mercantile capitalism

Answer 3

A

Question 4

The 2008 Troubled Assets Relief Program cost

A)$250 billion
B)$400 billion
C)$600 billion
D)$700 billion

Question 5

The hundreds of workers interviewed by Studs Terkel all spoke of

A)Injustice
B)Rationalization
C)Downsizing
D)Dehumanization

Question 6

Karl Marx argued that capitalism leads to

A)Wealth
B)Opportunity
C)Aristocracies
D)Oligopolies

Question 7

Adam Smith held that humans have a natural propensity to

A)Truck, barter, and exchange
B)To engage in illicit behavior
C)To seek revenge on profit-seekers
D)To try to outsmart each other

Question 8

Karl Marx held that workers inevitably experience

A)Alienation
B)Poverty
C)Fraud
D)Violence

Question 9

Subsidies for farmers and tariffs on steel, sugar, and ethanol are examples of

A)Free market principles
B)Patriotic fervor
C)Corporate welfare
D)The common good

Question 10

The theory of capitalism rests on a view of humans as

A)Rational economic creatures
B)Emotional creatures
C)Altruistic creatures
D)Irrational economic creatures

Question 11

The biggest five refiners in the United States control

A)35% of the market
B)47% of the market
C)56% of the market
D)68% of the market

Question 12

Karl Marx held that capitalists make profits through

A)Free and fair market exchange
B)Ingenious marketing
C)Exploiting their workers
D)Fraudulent wages

Question 13

Historically, capitalists have made money by

A)Exploiting their workers
B)Producing goods
C)Providing financial advice
D)Defrauding shareholders

Question 14

Companies that now produce only the package and the label of the goods they sell are

A)Fraudulent corporations
B)Dummy corporations
C)Hollow corporations
D)Capitalist corporations

Question 15

What we know as "capitalism" did not fully emerge until

A)The Renaissance
B)The Industrial Revolution
C)The Modern Era
D)The Revolutionary Period

Question 16

Capitalism that is based on mutual dependence between state and commercial interests is known as

A)State welfare capitalism
B)Monopoly capitalism
C)Industrial capitalism
D)Mercantile capitalism

Question 17

What did Smith think was the regulator that keeps a community activated by self-interest stable?

A)The law
B)Free competition
C)Altruism
D)Personal morality

Question 18

Capital is

A)Money invested for the purpose of making more money
B)The machinery and equipment of a plant
C)Cash held in case of emergency
D)Government backed currency

Question 19

From 1995 to 2002, U.S.taxpayers spent around

A)$86 billion in subsidies to farmers
B)$114 billion in subsidies to farmers
C)$147 billion in subsidies to farmers
D)$198 billion in subsidies to farmers

Question 20

Who is known for developing the concept of the invisible hand?

A)Locke
B)Hume
C)Marx
D)Smith

Question 21

In a capitalist system the major proportion of production and distribution is in private hands.

Question 22

Socialism is a system characterized by public ownership of property and a planned economy.

Question 23

Smith believed in the law of supply and demand.

Question 24

John Locke believed that people have a natural right to private property.

Question 25

The view that work is valuable for its own sake is the

A)American way
B)Protestant way
C)Work ethic
D)Marxist view

Question 26

Capital is unrelated to private property.

Question 27

There are no operational objections to capitalism.

Question 28

The United States owes the rest of the world

A)$400 billion
B)$900 billion
C)$2 trillion
D)$3 trillion

Question 29

An old stage of capitalist development was globalized capitalism.

Question 30

Yugoslavia once approximated worker control socialism.

Question 31

Smith gave careful arguments for the view that humans are acquisitive creatures.

Question 32

Americans work ____ more than they did in 1970.

A)10%
B)16%
C)20%
D)32%

Question 33

Americans work less than the French.

Question 34

In 2008 the United States pushed the world into an economic crisis.

Question 35

Paul Kostek is a

A)Developmental economist
B)Career development expert
C)Marxist historian
D)Libertarian philosopher

Question 36

The phrase "laissez faire" means "to let people do as they choose".