Unit Review: Economic Theories

Adam Smith's laissez-faire theories are most closely associated with

• the separation of church and state
• minimal government regulation of the economy
• a command economy
• high tariffs to protect domestic businesses

The economic theory of laissez-faire capitalism proposes that

• command economies should provide the greatest opportunity for national growth
• the practices of mercantilism should be expanded
• governments should not interfere with business
• the nobility should have strict control over business and industry

Laissez-faire practices are most closely associated with a

• command economy
• traditional economy
• mixed economy
• market economy

Which traits characterize a laissez-faire capitalist economic system?

• national health care and social security
• central planning and government quotas
• slash-and-burn agriculture and animal-powered technology
• private property and profit incentive

Which statement is supported by the ideas of Karl Marx?

• Countries should benefit from the wealth of their colonies.
• Industrial capitalism allows workers and employers to work together for a common purpose.
• Industrialization benefits the wealthy and exploits the poor.
• Private ownership of businesses helps workers.

In The Communist Manifesto, Karl Marx and Friedrich Engels expressed the idea that

• religion should be the most important factor in society
• profits from work should belong to the workers
• power should be determined by a person’s wealth
• supply and demand should control prices

Karl Marx and Friedrich Engels developed a theory that economic conditions would significantly improve for the working class only when

• the bourgeoisie became the ruling class
• workers controlled the means of production
• governments accepted the capitalist system
• workers negotiated with the capitalists

Karl Marx predicted that laissez-faire capitalism would result in

• a revolution led by the proletariat
• an equal distribution of wealth and income
• fewer government regulations
• a return to manorialism

According to Karl Marx, history is the record of

• increasing prosperity brought about by industrialization
• struggle between classes in society
• wars and conflicts between national leaders
• granting of more political liberties to all people

Which speaker is referring to laissez-faire capitalism?

• Speaker A
• Speaker B
• Speaker C
• Speaker D