New Economic Theories Answers

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1
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In a free market, supply and demand determines

A
the type and number of goods produced.
B
the number and distribution of goods produced.
C
the raw materials and tools used to produce goods.
D
the factories and machines used to produce goods.
2
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Which best explains how a mixed economy addressed problems that arose from capitalism?

A
Laissez-faire principles remained, but government passed laws promoting worker safety.
B
Government interference continued, and new laws allowed workers to own companies.
C
Supply and demand remained, and government took control of the means of production.
D
Government regulation was minimal, but new laws protected workers and their standard of living.
3

Karl Marx developed the economic theory of

A
socialism.
B
capitalism.
C
utopianism.
D
communism.
4

communismsocialismcapitalismutopianism

A
communism
B
socialism
C
capitalism
D
utopianism
5

Adam Smith believed that fair prices for goods are determined in a capitalist system

A
through competition between businesses.
B
by government regulation of businesses.
C
by setting limits on imports and exports.
D
through competition between consumers.
6

The three main ideas behind capitalism as defined by Adam Smith are

A
free markets, laissez-faire, and fair taxes.
B
competition, self interest, and laissez-faire.
C
laissez-faire, regulation, and self interest.
D
competition, free markets, and trade limits.
7

communismsocialismcapitalismutopianism

A
communism
B
socialism
C
capitalism
D
utopianism
8

As economic theories, socialism and communism sought to

A
encourage private ownership of businesses.
B
even out inequalities of wealth.
C
encourage little government oversight.
D
build housing and schools for workers.
9

dictatorscapitalistsmonarchsworkers

A
dictators
B
capitalists
C
monarchs
D
workers
10

What two principles form the basis for capitalism?

A
private ownership and equal wealth
B
free markets and shared property
C
private ownership and free markets
D
free markets and government oversight
11

In a dictatorship of the proletariat, who controls the government?

A
dictators
B
industrialists
C
business owners
D
working classes
12

Workers competed for jobs in the model factory started by Robert Owen because

A
he overpaid them.
B
he built schools.
C
he was famous.
D
he guaranteed jobs.
13

During industrialization, which led to an exploration of new economic theories?

A
a war between socialists and capitalists
B
a gap between rich and poor
C
the seizure of property by the government
D
the fight to control businesses by individuals

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