QUESTION In comparison to market economies, command economies lack: A. government interference in allocation of resources. B. dynamism and innovation. C. concern for the interests of the nation. D. commitment to communism. E. any opposition to private ownership. ANSWER B In a command economy, state-owned enterprises have little incentive to control costs and be […]
QUESTION In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? A. Command B. Pure market C. Mixed D. Centrally planned E. Laissez-faire ANSWER C In a mixed economy, certain sectors of the […]
QUESTION In mixed economies, governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. Once a government takes into state ownership such troubled firms, they are said to be: A. privatized. B. decentralized. C. liberalized. D. nationalized. E. deregulated. ANSWER D In mixed […]
QUESTION The Boldovian government took Sea Lion Inc., a domestic, private shipbuilding firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the shipbuilding industry were enraged by this decision of the government. As a result, the government had to reduce the tax burden on all other private shipbuilding […]
QUESTION Which of the following is true about the three broad types of economic systems? A. For a pure market economy to function efficiently product supply must be restricted. B. In a command economy, state-owned enterprises have little incentive to control costs and be efficient. C. The sole role of government in a command economy […]
QUESTION Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, whereas the laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the: A. economic system of a country is independent of its legal system. B. legal system […]
QUESTION Which of the following is a form of totalitarianism which advocates that socialism can be achieved only through a totalitarian dictatorship? A. Tribal totalitarianism B. Democratic totalitarianism C. Communist totalitarianism D. Theocratic totalitarianism E. Right-wing totalitarianism ANSWER C Communist totalitarianism is a form of totalitarianism that advocates achieving socialism through totalitarian dictatorship.
QUESTION Modern socialism traces its intellectual roots to: A. Aristotle. B. David Hume. C. Karl Marx. D. Adam Smith. E. Milton Friedman. ANSWER C Modern socialism traces its intellectual roots to Karl Marx (1818-83), although socialist thought clearly predates Marx.
QUESTION States that limit the freedom of religious expression with laws based on religious principles most likely follow the political system of: A. theocratic totalitarianism. B. communist totalitarianism. C. right-wing totalitarianism. D. pure democracy. E. representative democracy. ANSWER A A political system in which political power is monopolized by a party, group, or individual […]
QUESTION In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as: A. communists. B. capitalists. C. democrats. D. individualists. E. anarchists. ANSWER A In the early twentieth century, the socialist […]
