PRACTICE for TEST M15 L4: Reforming the Industrial World

Which of the following is NOT one of Adam Smith's Laws of Economics?

• Law of Self-interest

• Law of Supply & Demand

• Law of Equality

Answer explanation

The Law of Equality is not one of Adam Smith's Laws of Economics. The correct laws include the Law of Self-interest and the Law of Supply & Demand, which focus on individual motivations and market dynamics.

According to Adam Smith, a free market economy works best when it is driven by this natural law of economics

• government rules

• large corporations

• competition

Answer explanation

According to Adam Smith, competition is the driving force of a free market economy. It fosters innovation and efficiency, leading to better products and services, which ultimately benefits consumers.

According to Karl Marx, the final stage of human history will be a society without government or social class, which he called

• communism

• the dictatorship of the wealthy

• utilitarianism

Answer explanation

According to Karl Marx, the final stage of human history is communism, a classless and stateless society where the means of production are communally owned, eliminating the need for government and social classes.

Thomas Malthus, who was alarmed about rapid population growth, predicted which of the following?

• resources and food would become scarce, causing terrible living conditions and conflicts.

• cities would adapt to growing populations by improving sanitary conditions.

• the government would regulate child labor.

Answer explanation

Thomas Malthus predicted that rapid population growth would lead to scarcity of resources and food, resulting in poor living conditions and potential conflicts, making this the correct choice.

According to socialists, the solution to poverty and injustice was

• armed revolution to overthrow the proletariat.

• shared ownership by the people of the means of production.

• the charity and good works of the religious community.

Answer explanation

According to socialists, poverty and injustice stem from unequal ownership of resources. They advocate for shared ownership of the means of production, ensuring that wealth and power are distributed more equitably among the people.

Jeremy Bentham, a Utilitarian (Utilitarian Philosophy) reformer, believed that

• government should play no role in the economy.

• laws should be judged by their usefulness and benefit to the greatest number of people.

• the government should make all decisions for the economy.

Answer explanation

Jeremy Bentham's Utilitarian philosophy emphasizes that laws should be evaluated based on their ability to promote the greatest happiness for the greatest number, making the correct choice about judging laws by their usefulness.

Karl Marx argued that history was advanced by the conflict between

• religions

• social classes

• nations

Answer explanation

Karl Marx believed that history progresses through the struggle between social classes, particularly the conflict between the bourgeoisie and the proletariat, making 'social classes' the correct answer.

Which group of people, inspired by Robert Owen, established communities where all work is shared and all property is owned in common, in the hopes of creating the perfect society?

• Utopians

• Luddites

• Capitalists

Answer explanation

Utopians, inspired by Robert Owen, sought to create ideal communities where work and property were shared equally, aiming for a perfect society. This distinguishes them from Luddites and Capitalists, who had different goals.

Karl Marx despised capitalism (the Free Market) because he believed that it

• discouraged labor unions.

• limited the individual freedoms of the people.

• created prosperity for a few and poverty for many.

Answer explanation

Karl Marx believed capitalism created a system where wealth was concentrated in the hands of a few, leading to significant poverty for the majority. This inequality was a central reason for his disdain for the Free Market.

“The greatest happiness for the greatest number” was a goal of

• laissez-faire.

• communism

• utilitarianism

Answer explanation

The phrase "The greatest happiness for the greatest number" is a fundamental principle of utilitarianism, which advocates for actions that maximize overall happiness. This distinguishes it from laissez-faire and communism.