TB 43b

Which statement BEST describes Karl Marx's view of laissez-faire capitalism?

• He believed it would result in a workers' revolution.

• He believed it would increase workers' standards of living.

• He believed it would cause a reduction in national wealth.

According to Karl Marx, what is history?

• a reflection of humanity's accomplishments

• a struggle between the economic classes

Which factor did Adam Smith believe was MOST important to economic prosperity?

• self-interest

• collective action

What did Karl Marx believe would eventually transform society?

• a revolution of the working class

• a return to agrarian life

What did Adam Smith's economic arguments emphasize the importance of?

• the efficiency of markets

• the benefits of public spending

• the impact of strict monetary policies

What type of market did Adam Smith's term "laissez-faire" relate to?

• free market economies

• pure command economies

What is true in a laissez-faire economy?

• Prices are based on supply and demand.

• Traditions determine the distribution of goods.

Which economist emphasized the role of individual self-interest in promoting the common good?

• Adam Smith

• David Ricardo

What contributed to the rise of communism?

• the Industrial Revolution

• the Enlightenment

What was the "invisible hand" imagined by Adam Smith?

• the combination of individual behaviors that bring about unintended social benefits

• the interaction of supply and demand to determine equilibrium market prices