QUESTION In what type of economy are all businesses state owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals? A. Free market B. Deregulated C. Pure command D. Mixed E. […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Which of the following applies to most totalitarian states? A. Free and fair elections are not denied to the citizens. B. There is free access to state information. C. All the basic civil liberties are granted to the citizens. D. The right to freedom of expression and organization is not curbed. E. Media are […]
Date: September 3rd, 2020
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.
Date: September 3rd, 2020
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.
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
