Capitalism Quiz

What is the core definition of capitalism?

• An economic system based on public ownership and planned economy.

• An economic system based on profit and market exchange.

• An economic system based on barter and trade.

• An economic system based on communal sharing and cooperation.

Which of the following is a key characteristic of capitalism?

• Public ownership of the means of production.

• Market-oriented but with worker-controlled firms.

• Private ownership of the means of production.

• Emphasis on communal decision-making.

Who was Hans Fugger?

• A merchant who focused on international trade.

• A weaver who employed others.

• A banker who controlled financial markets.

• A philosopher who critiqued capitalism.

What was a significant shift in motivation during the Renaissance and Early Capitalism?

• From profit-seeking to community support.

• From livelihood to active profit-seeking.

• From barter to currency-based trade.

• From individual to state-controlled enterprises.

What is a key indicator of economic strength in Mercantile Capitalism?

• The number of factories.

• The amount of gold and silver.

• The size of the working class.

• The level of government control.

What is a key feature of state welfare capitalism?

• Interconnected economies

• Government programs to mitigate negative consequences of capitalism

• Rise of corporations

• Sophisticated banking systems

Which of the following is a characteristic of globalized capitalism?

• Businesses operating only within national borders

• Limited flow of money and goods

• Companies sourcing materials/labor globally for cost efficiency

• Lack of instant communication

What does the "Invisible Hand" theory suggest?

• Government intervention is necessary for market success

• Individual self-interest benefits everyone through free markets

• Businesses should avoid competition

• Profit is not a primary goal

What is meant by companies being separate entities in capitalism?

• They are indistinct from their owners

• They have no legal rights

• They are distinct legal entities with rights and responsibilities

• They cannot enter into contracts

What is the role of private property in capitalism?

• It is owned by the government

• It includes only personal belongings

• It involves ownership of means of production by individuals or corporations

• It is not important for economic growth