Deck 4: Governments Role in the Economy: The Offer You Cant Refuse

Question 1

The tragedy of the commons for capitalism is ______.

A)the limited amount of profit
B)the competition between capitalists
C)the limited amount of governmental resources
D)the overexploitation of the workers in the pool of labor

Answer 1

D

Question 2

Which of the following,in his work The Wealth of Nations,used the example of the manufacture of sewing pins to highlight the benefits of factories?

A)Adam Smith
B)Karl Marx
C)Aristotle
D)Joseph Stalin

Answer 2

A

Question 3

A person exhibits enlightened self-interest when ______.

A)a person sacrifices their own self-interest for the need to preserve a common resource
B)a person recognizes the inherent conflict of self-interest
C)a person recognizes the importance of their self-interest above the interest of others
D)a person recognizes the collective action problem generated by self-interest

Answer 3

A

Question 4

Which of the following represents a modern-day tragedy of the commons?

A)global warming
B)air and water pollution
C)depletion of oil (fossil fuel)supplies
D)all of these

Question 5

Which of the following is true about the relationship between feudal lord and serf compared to the relationship between a factory worker and the factory owner?

A)The lord and serf are mutually dependent,just like the factory owner and worker.
B)The lord and serf are mutually dependent,but the factory owner and worker are not.
C)The lord and serf relationship is directly mirrored in the relationship between factory owner and worker.
D)No gods,no masters!

Question 6

The tragedy of the ______ is a situation in which the rational choices of individuals collide with the needs or interests of the larger community,leading to the exploitation of shared resources.

A)cave
B)commons
C)ages
D)classroom

Question 7

Adam Smith argued that the key to economic prosperity was ______.

A)eliminating the division of labor that depressed wages for trained craftspeople
B)nationalization of the finance industry
C)the rational self-interest of people interacting in a free marketplace
D)redistribution of wealth on the basis of individual need

Question 8

A modern tragedy of the commons is (the)______.

A)nuclear proliferation
B)depletion of natural resources
C)human rights
D)textbook prices

Question 9

Which of the following statements about feudalism is false?

A)Under feudalism,peasants were ruthlessly exploited.
B)Under feudalism,one became a landlord by demonstrating one's competence at farming and the raising of livestock.
C)Under feudalism,the peasants raised a diverse mixture of crops and livestock on small plots within the landlord's estate and were obligated to give a substantial percentage of their production to the landlord.
D)Under feudalism,the landlord and the peasant needed each other.

Question 10

In the tragedy of the commons,one farmer's personal wants or needs outweigh his or her ______.

A)individual resources
B)access to grazing land and freshwater for sheep
C)commitment to the interests of the community
D)financial means

Question 11

Which of the following refers to an economic system in which society controls the means of production?

A)mercantilism
B)capitalism
C)imperialism
D)socialism

Question 12

The mechanisms for transforming labor into wealth are called which of the following?

A)the justifications
B)the ends of business
C)the means of production
D)the circle of commerce

Question 13

In a pure socialist society,what is the main factor driving decisions related to production?

A)the lyrics of anarcho-syndicalist punk bands
B)equality in the distribution of society's wealth
C)privatization of major industries,but with strict government oversight
D)efficiency in the division of labor

Question 14

According to the textbook author Van Belle,idealists believe money to be ______.

A)a distraction from more noble and altruistic goals
B)the means to an end
C)the root of all evil
D)the solution

Question 15

Which of the following comments about Karl Marx is true?

A)Marx's theories are indistinguishable from those of Vladimir I.Lenin.
B)Marx underestimated people's industriousness.
C)Marx's theories have been followed more closely in the United States.
D)Marx was a humanist.

Question 16

Which of the following statements about capitalism is false?

A)The driving force in capitalism is the competition between capitalists.
B)Laissez-faire capitalism is an economic system with very little,if any,government involvement in the economy.
C)Another name for capitalism is feudalism.
D)Marx noted both the benefits and the flaws of capitalism.

Question 17

A capitalist economy with little to no governmental regulation is considered to be (a)______.

A)laissez-faire economy
B)socialist economy
C)communist economy
D)utopian economy

Question 18

Which of the following is socialism's biggest flaw?

A)It is hard to motivate people to work and even harder to motivate people to seek efficiencies or get them to excel at their craft.
B)Workers become too competitive.
C)Labor is undervalued,creating a "tragedy of the commons."
D)Its stress on agriculture is no longer applicable in today's worlD.

Question 19

Which of the following statements about capitalism and socialism is true?

A)Capitalism has completely destroyed all vestiges of socialism.
B)Pure socialist countries now outnumber all other countries combined.
C)Adam Smith uncovered the perfect balance between socialism and communism.
D)All functioning capitalist systems in the world today are actually mixtures of capitalism and socialism.

Question 20

What is the driving force of capitalism?

A)capital
B)free market environment
C)competition
D)labor

Question 21

A humanist is an idealist who is interested in and motivated by concern for the broader human condition and the quality of people's lives.

Question 22

Competition among capitalists does not affect factory prices.

Question 23

Discuss how pollution,global warming,and the depletion of natural resources are a modern tragedy of the commons.

Question 24

Which of the following could be considered a modern Tragedy of the Commons?

A)Internet
B)fossil fuels
C)military resources
D)social media

Question 25

The Federal Reserve rate is the interest rate the Federal Reserve charges on loans to the government.

Question 26

Laissez-faire capitalism is an economic system characterized by very little,if any,government involvement in the economy.

Question 27

Recount one of the chapter's three examples of the tragedy of the commons and explain why the tragedy is inevitable.

Question 28

Explain what the text means when it says,"The real question [for government] is not capitalism versus socialism,but what balance between the two systems is best."

Question 29

The United States is an example of a laissez-faire economic system.

Question 30

Currencies are an accounting system we use to represent wealth.

Question 31

The tragedy of the commons is a result of the issues of collective action.

Question 32

In which present-day nation do we find large-scale capitalism in its rawest form?

A)China
B)Iran
C)Freedonia
D)United States

Question 33

Deflation is a good thing.

Question 34

Pure capitalism is also referred to as feudalism.

Question 35

Available fresh,clean water is an example of a modern-day tragedy of the commons.

Question 36

What were the elements that,during the early decades of industrial capitalism,determined the prices that factories would charge their customers?

Question 37

What is one of the most important labels that can be placed on Karl Marx?

A)humanist
B)Marxist
C)capitalist
D)liberal

Question 38

This chapter examines several collective action problems,such as the tragedy of the commons,the stag hunt,and the example of fish stocks.All these examples show the problems that arise when individual self-interest conflicts with collective efforts,and why collective action tends to fail,even taking into consideration enlightened self-interest.There is a solution to making sure everyone cooperates.Explain what this solution is and give at least one example of how it resolves a collective action problem.

Question 39

The story of the tragedy of commons can be told in many ways.

Question 40

In Chinese cosmology,the yin and yang are complementary forces.