Deck 4: The Nature of Capitalism

Question 1

One reason for believing that in practice capitalism fails to live up to its own ideal of competition is

A)government subsidies and protective tariffs.
B)monopolies control almost all areas of economic life.
C)so many small companies go bankrupt.
D)the outsourcing of jobs.

Answer 1

A

Question 2

Which of the following accurately reflects the concept of Marxism?

A)It is only within a capitalist economic system that workers are not alienated from the products of their labor.
B)Only workers who are poorly paid for their labor are alienated.
C)Within a capitalist economic system,the activity of labor is an end in itself and,as a result,has intrinsic value.
D)Labor is alienated in a capitalist economic system (in part)because the labor of a worker stands opposed to the worker as an autonomous power.

Answer 2

D

Question 3

Which of the following historical stages of capitalism came first?

A)financial
B)mercantile
C)industrial
D)state welfare

Answer 3

B

Question 4

An exclusive focus on short-term performance

A)is the best guarantee of a company's long-term performance.
B)has helped to create a high-pressure environment conducive to fraud.
C)encourages long-term research and development.
D)hurts stock prices.

Question 5

Which statement creates the best picture of capitalism?

A)Industrial capitalism is characterized by pools,trusts,holding companies and an interpenetration of banking,insurance and industrial interests.
B)Mercantile capitalism emerged in the United States in the period directly following the civil war.
C)In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom-and-bust pattern of the business cycle.
D)Financial capitalism developed in the period immediately prior to the Renaissance.

Question 6

Which of the following is an accurate statement?

A)Adam Smith defends capitalism by appealing to the idea of a natural,moral right to property.
B)Adam Smith denies that human beings are,by nature,acquisitive creatures.
C)A common defense of capitalism is the argument that people have a fundamental moral right to property and that our capitalist system is simply the outcome of this natural right.
D)Utilitarians oppose capitalism in principle.

Question 7

One of the four key features of capitalism is

A)favoritism.
B)cooperation.
C)inequality.
D)private property.

Question 8

The Fugger dynasty was an example of

A)industrial capitalism.
B)mercantile capitalism.
C)financial capitalism.
D)globalized capitalism.

Question 9

For employees who are paid handsomely for their efforts,  Marx said their work would ultimately prove to be

A)profitable to them.
B)expensive to them.
C)meaningless to them.
D)tireless.

Question 10

According to one survey of cultural values

A)Americans value work more than Japanese do.
B)for Americans,only good health is more important than work.
C)Americans typically value things like their children's education and a satisfactory love life more than work.
D)Americans place no value on work,only on money.

Question 11

A basic premise of Adam Smith's is

A)human beings try to avoid acquisitive behavior.
B)when people are left to pursue their own economic interests,disaster looms.
C)the division of labor,though good for the firm,reduces overall efficiency.
D)we can secure what we need from others only by offering them something they need from us.

Question 12

Marxism states

A)capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.
B)socialism will eventually be replaced by financial capitalism.
C)the means of production should be placed under the control of the bourgeoisie.
D)only workers who are poorly paid in a capitalist system are alienated.

Question 13

A basic tenet of capitalism is that

A)property refers only to physical objects.
B)ownership is a simple relationship between a person and the thing owned.
C)capitalism requires private ownership of the major means of production.
D)in the 21st century,capitalism no longer requires capital.

Question 14

In contrast to traditional manufacturers,many companies have become hollow corporations who

A)increase their manufacturing operations in the U.S.
B)prefer their own production base and not a network of small operators both foreign and domestic.
C)make nearly all crucial parts.
D)outsource and likely produce only the package and the label .

Question 15

Capitalism operates on the debatable assumption that human beings find increased well-being through

A)production of equality.
B)eliminating poverty.
C)greater material consumption.
D)a higher sense of purpose.

Question 16

Which statement best describes capitalism?

A)Capitalism is an economic system in which the means of production and distribution is in state hands.
B)Capitalism is an economic system that operates under the profit motive.
C)Capitalism is an economic system that dispenses with competition.
D)Capitalism is an economic system where the profits generated belong to the state as a whole.

Question 17

Karl Marx believed that

A)under capitalism workers are alienated in several ways.
B)capitalism no longer exploits workers.
C)industrialization does away with alienation.
D)workers are alienated from their products,but not from themselves or other people.

Question 18

The profit motive

A)is a fundamental feature of all societies.
B)is no longer a key feature of capitalism.
C)must be checked by competition if society is to benefit.
D)is basically immoral.

Question 19

Evidence for the idea that American manufacturing is declining is

A)the fact that government now employs more people than manufacturing.
B)a reluctance to outsource.
C)fewer "hollow" corporations.
D)a shrinking trade deficit.

Question 20

The concept of the "invisible hand" means

A)each person's private pursuit of wealth will result in the most beneficial overall organization and distribution of economic resources.
B)although it can't be seen,the hand of government controls the economy and exerts a beneficial pressure that promotes economic welfare.
C)feudalism inevitably gives rise to capitalism.
D)externalities must be internalized.

Question 21

As a classical moral justification of capitalism,the natural right to property is a utilitarian justification.

Question 22

Rather than strong work ethic,a more commonly seen role is:

A)Me - first
B)Happy days are here to stay
C)I like it easy
D)Let the boss sweat it

Question 23

More Americans are putting aside job success to

A)win the lottery.
B)be with their families.
C)get education.
D)travel abroad.

Question 24

Adam Smith claims that the proper role of governments is to restrict and regulate the self-interested behavior of business organizations for the common good.

Question 25

Capital is that money that is invested for the purpose of making more money.

Question 26

The sense of private property that is central to capitalism is the ownership of the means of production and distribution.

Question 27

Worker control socialism is a hybrid economic system with no marketplace and no profits.

Question 28

Property ownership involves a generally complex bundle of rights and rules governing how,under what circumstances,and in what ways both the owner and others can use,possess,dispose of,and have access to the thing in question.

Question 29

What we call capitalism did not fully emerge until the Renaissance in Europe during the 15th and 16th centuries.

Question 30

Though many jobs are outsourced,most economists believe

A)Mexico is the place to work.
B)the United States is in trouble.
C)the economy will create new jobs.
D)manufacturing will make a comeback.

Question 31

For the first time since the Industrial Revolution,  less than _____ percent of the American workforce was employed by manufacturing.

A)10
B)25
C)50
D)62

Question 32

Socialism is an economic system characterized by public ownership of the means of production and distribution,and a planned economy.

Question 33

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

Question 34

Utilitarians reject the very idea of a natural right to property.

Question 35

Capitalism is possible without private property.

Question 36

According to Adam Smith,individuals have natural endowments that should determine the kind of work they do.

Question 37

Implicit in capitalism is the view that human beings aim to maximize their economic self-interest.

Question 38

According to Adam Smith,the division of labor decreases economic activity.

Question 39

Many economists are concerned that the growing trade deficit makes the U.S.vulnerable to

A)terrorist attacks.
B)depression.
C)ease.
D)economic extortion.

Question 40

If it's true that individuals have a natural right to own property,then there can be no limits on this right.

Question 41

According to Marx,the best economic system would be one where the means of production and distribution are in the hands of the bourgeoisie.

Question 42

What is the difference between capitalism and socialism? What is "worker control socialism"?

Question 43

What is capitalism's view of human nature?

Question 44

Some critics believe that "competition is not a good" because trying to do well and trying to beat others are two different things.

Question 45

According to John Stuart Mill,what makes capitalism a desirable economic system is the type of worker-capitalist relationship inherent in capitalism.

Question 46

What are the five different historical forms of capitalism?

Question 47

The U.S.trade deficit has shrunk significantly in recent decades.

Question 48

Sometimes capitalism is defended based on the idea that we have a natural right to property.How might this defense be criticized?

Question 49

According to Alfie Kohn,competition promotes individual and group achievement better than cooperation.

Question 50

What does it mean to say that American companies are too focused on the short term?

Question 51

The capitalism that we know today in the United States is a "pure" form of laissez-faire capitalism.

Question 52

What are the four features of capitalism?

Question 53

None of the specific measures proposed by Marx and Engels in the Communist Manifesto have been implemented in capitalist countries.

Question 54

According to Marx,when workers are alienated they are not truly free.

Question 55

What reason is there for thinking that American manufacturing is declining?

Question 56

Why do some critics of competition believe that it isn't all that it's cracked up to be?

Question 57

Outsourcing is a practice where companies buy parts or whole products from other producers,both at home and abroad.

Question 58

How do defenders of capitalism respond to critics who point to the profound economic inequalities that characterize capitalist society?

Question 59

What is the "invisible hand" of Adam Smith?

Question 60

Government programs often subsidize American businesses and protect them from competition.

Question 61

Explain and respond to one of the criticisms of capitalism provided​ in the text by taking a stance on whether you feel capitalism increases or decreases inequality.

Question 62

Is manufacturing vital to the success and well-being of America?  Justify your answer.

Question 63

Is Walmart a positive or negative influence on the American economy?  Justify your position with information from Case 4.3,"One Nation under Walmart."

Question 64

How can you justify the role of "sweatshops" after reading Case 4.1,"Catastrophe in Bangladesh"?  Defend your position with facts.

Question 65

Explain the correlation between job security and work ethic now and in the past.