Why does the United States not have a purely capitalistic economy?

The government regulates many aspects of the economy.

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Ch. 1 Foundations of Government Lesson 3: The Role of Government in Economic Systems

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Answers

1
While socialist governments provide many social services (education and health care) they also
actively promote a state religion.
control every aspect of their citizens' daily life.
maintain large militaries.
have higher tax rates.
2
What pushed the U.S. government to get involved in the economy in the 1930s?
the Great Depression
the discovery of oil on government lands in Texas
World War II
an influx of immigrants
3
A crucial factor in capitalism is the role of
government.
competition.
religion.
sharing.
4
Many of the basic ideas of capitalism are found in
the Bible.
the writings of Adam Smith.
traditional culture.
the teachings of Thomas Hobbes.
5
Democratic socialists prefer a government that makes economic decisions in order to
become powerful on the world stage.
create great wealth for business owners.
benefit the most people.
increase the size of government offices.
6
The development of socialism was a reaction to
World War I.
the Industrial Revolution.
the American Revolution.
the Cold War.
7
In a purely communist country, the state would
sell licenses to businesses to perform certain work.
make decisions about political matters only.
own all land and resources.
let business owners set the minimum wage.
8
Why does the United States not have a purely capitalistic economy?
The government regulates many aspects of the economy.
Limited natural resources prevent purely capitalist economy.
Citizens have no interest in private property.
Constitution states what economy should&should not include.
9
Which of the following is a role a government might play in a mixed economy?
owning all the banks
inspecting food
taking a "hands-off" approach to any economic activity
refusing to enforce contracts
10
Which of the following individuals is most closely associated with communism?
Ayn Rand
Thomas Hobbes
Adam Smith
Karl Marx

Ch. 1 Foundations of Government Lesson 3: The Role of Government in Economic Systems Flashcards | StudBud