Economic Systems and Opportunity Costs

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

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 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 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

Which economic system is driven by competition and became popular during the Industrial Revolution?

• socialism

• communism

• democracy

• capitalism

Which of these changes during the Industrial Revolution led to greater efficiency?

• Workers received labor rights.

• Major labor unions were formed.

• Slavery and other forms of forced labor were eliminated.

• Animal and human power were generally replaced with steam power

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

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

What countries have a Command Economy?

• Iceland, Sweden, France, Australia

• United States, Russia, Africa, Haiti

• India, United Kingdom, Brazil

• North Korea, Cuba, Soviet Union, China, Vietnam