Economics Chapter 6 Quiz

Which of the following was NOT a point of merchantilism?

• Trade

• Domestic manufacturing

• Nationalization

• Colonization

Why is radical capitalism unscriptural?

• It denies the legitimacy of the government.

• It denies the legitimacy of the family.

• It denies the legitimacy of the church.

• It denies the legitimacy of the business firm.

What is the process called in which the government sells nationalized business back to private stockholders?

• Privatization

• Socialism

• Welfare state

• Discentralization

Of the three varieties of capitalism, which one is the closest in theory and practice to socialism?

• Radical capitalism

• Classic liberal capitalism

• State capitalism

Of the varieties of socialism, which one is the closest in theory and practice to capitalism?

• Communism

• Centralized socialism

• Social democracy

In socialism, who owns the nation's factors of production

• Individual

• Family

• Business firm

• Government

Under which form of capitalism is the existence of the government accepted, even though the government is allowed only minimal ownership of resources and decision-making power to perform its responsibilities?

• State capitalism

• Classic liberal capitalism

• Radical capitalism

In which economic system is the national government both the central owner and decision maker in all economic affairs of the state?

• State capitalism

• Laissez-faire liberalism

• Social democracy

• Centralized socialism

Laissez-faire liberalism was advocated by which famous economist?

• Thomas Sowell

• Adam Smith

• Charles Menger

• Karl Marx

Under classic liberal capitalism, what things are the government to provide? (Check all that apply.)

• Protection of citizens from foreign aggression

• Protection of the rights of its citizens from infringement by others

• Provision of public goods

• A living wage for each citizen.