Capitalism vs Communism

Which one of the following is NOT a characteristic of capitalism?

• Extensive government planning

• Private property

• Free exchange

• Competitive markets

What determines the price of a good or service in a capitalistic economy?

• Businesses

• Government

• Consumers

• Supply and demand

Which of the following is the best explanation of a free market in the real world?

• A market where consumers set the terms of exchange

• A market where businesses set the terms of exchange

• A market with no government intervention

• A market with limited government intervention

Why is rewarding risk-taking an advantage to capitalism?

• Because it recognizes the limited danger of climate change

• Because it provides an incentive for innovation and economic growth

• Because it creates great disparity in wealth

• Because it promotes self-interest that is necessary for survival

How should a government behave in a capitalist system?

• By setting a ceiling on prices

• By determining production levels

• By regulating how many companies can compete in a given sector.

• By enacting laws to ensure there is a level playing field

What would never happen in a truly communist society?

• Some people will be richer than other people.

• Private property will be abolished

• People will work

• People would be of the same social class

What is a difference between Marxism and Maoism?

• Maoism believed that factory workers would lead the communist revolution. Marx believed that peasants would lead the communist revolution.

• Maoism believed that peasants would lead the communist revolution. Marx believed that factory workers would lead the communist revolution.

• Marxism was procapitalist and Maoism was procommunist.

• There is no difference between the two.

What is a fundamental difference between capitalism and communism?

• None of the other answers is correct.

• Communism has been successfully implemented in many cases. Capitalism is still largely theoretical.

• Capitalism bans private property. Communism promotes private property.

• Communism bans private property. Capitalism promotes private property.

The clash of communism and capitalism was one of the root causes of which war?

• The Cold War

• World War II

• World War I

• The Vietnam War

Which is a characteristic of communism?

• Right of Free Speech

• Liberty

• Equality of Wealth

• Freedom of the Press