Capitalism Quiz

What is the core definition of capitalism?

• An economic system based on profit and market exchange.

• A system where the government controls all resources.

• A barter system without the use of money.

• A system focused on communal ownership of property.

Which of the following is a key characteristic of capitalism?

• Public ownership of the means of production.

• Private ownership of the means of production.

• Government control of all businesses.

• Communal sharing of resources.

What is the fundamental question in defining capitalism?

• Who owns/controls the means of production, resources, and their usage?

• How are profits distributed among workers?

• What is the role of government in regulating prices?

• How are taxes collected from corporations?

What does the "Invisible Hand" theory suggest?

• Government intervention is necessary for market stability.

• Individual self-interest benefits everyone when channeled through free markets.

• Markets should be controlled by a few large firms.

• Prices should be set by a central authority.

In capitalism, what is the role of private property?

• It is owned by the government for public use.

• It includes only personal belongings, not means of production.

• It is owned by individuals or corporations, not the government.

• It is shared equally among all members of society.

What is one argument in favor of capitalism mentioned in the document?

• Inequality and Poverty

• Natural Right to Property

• Problematic Competition

• Marx's Critique

Which of the following is a criticism of capitalism related to human nature?

• Efficiency and Productivity

• Natural Right to Property

• Assumptions About Human Nature

• Decline of American Manufacturing

What is a concern associated with the decline of American manufacturing?

• Increased job opportunities

• Rise of local businesses

• Loss of jobs due to automation and outsourcing

• Decrease in service-based economy

What is one impact of the U.S. trade deficit mentioned in the document?

• Increase in domestic production

• Job losses and currency devaluation

• Decrease in foreign borrowing

• Strengthening of local industries

What is a changing attitude towards work mentioned in the document?

• Emphasis on traditional work ethic

• Focus on short-term profits

• Emphasis on meaning and work-life balance

• Increase in manufacturing jobs