Ch. 2 Econ. Quiz

All of the following are difficulties associated with the global transition to capitalism EXCEPT

• People must learn to make decisions for themselves

• Former leaders may exchange political power by seizing economic power

• Citizens generally experience a higher standard of living over time

• Country must learn to deal with instabilities of capitalism

Cuba and Vietnam are examples of Command Economies with Socialist elements.

• True

• False

All of the following are advantages of a market economy EXCEPT

• the many social safety nets

• high degree of freedom

• decentralized decision making

• large variety of goods and services produced

Which country is known for its socialist elements?

• Sweden

• Norway

• Germany

• All of the above

A voucher is...

• One way for a communist nation to seize land from its citizens

• A certificate that could be used to purchase government owned property during privatization

• The defining element of a mixed market economy

• A formal request for taxes to be lowered under socialism

GDP per capita refers to the GDP of a nation divided by the number of industries.

• True

• False

Factors of production are owned and operated by the state.

• Communism

• Mixed Market

• Mixed Socialism

• None of the above

In a _________ economy, rituals, habits, and customs answer the 3 economic questions.

• Traditional

• Command

• Market

• Mixed

Which of the following is an example of a disadvantage of a mixed economy?

• Does not provide for everyone

• little innovation leading to stagnation

• the high cost of social welfare programs

• High degree of uncertainty

The Inuit peoples of Northern Canada are a primary example of a mixed socialist economy.

• True

• False