The most significant effect of the New Deal on capitalist economies was the

changed perception of the role of government in the economy

Laissez-faire capitalists oppose unions primarily because they believe that unions

increase the cost of production

The economist Keynes recommended that during periods of economic prosperity governments should

reduce spending but raise taxes to dampen inflation

Which of the following statements reflects an ideological inconsistency?

a country with a market introduces price controls.

If a state has high unemployment a right wing capitalist would

leave it alone to allow the market to correct itself

In a mixed economy such as Canada's the goal of economic equity is pursued through

transfer payments and progressive income tax rates

From a right-wing perspective centrally planned economies have the greatest difficulty

providing incentives for innovation

Supporters of public enterprise systems see competition as negative force because

leads to inefficient use of goods and services

Which government action would be considered a move to the "left” on the economic spectrum?

Intro user fees for health services to reduce budget debt

To counter recessionary trends a state with a market economy would most likely introduce

a reduction in small business subsidies

Which of the following operates outside of supply and demand to determine prices?

a monopolistic franchise granted to a utility firm

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Social 30-1 Economics

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Economics: Ebb and Flow

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Questions 20

Answers

1
Roosevelt's New Deal relied on the ideas and principals of one of the following.
John Maynard Keynes
Karl Marx
John Stuart Mill
2
The most significant effect of the New Deal on capitalist economies was the
gov't intervention was not successful in curing the economy
regulations that limited the actions of chartered banks
changed perception of the role of government in the economy
new competition to the private sector by government sector
3
Laissez-faire capitalists oppose unions primarily because they believe that unions
restrict consumer confidence and spending
encourage governments to spend lavishly on public works
fail to act in the long-term interests of their members
increase the cost of production
4
The father of capitalism
Marx
Smith
Lenin
Mill
5
Economic planning was centralized in the U.S.S.R. to encourage increased
thrift through consumer saving
equality among citizens
initiative among factory owners
competition through monetary incentives
6
The economist Keynes recommended that during periods of economic prosperity governments should
lower interest rates to encourage investment
nationalize industries with high debt loads
reduce spending but raise taxes to dampen inflation
increase transfer payments and social welfare spending
7
Which of the following statements reflects an ideological inconsistency?
A communist state nationalizes the resources of a nation
a country with a market introduces price controls.
A social democratic nation stops doctors from charging fees.
fascist government bans independent labour unions.
8
Canada is an example of a
market economy
mixed economy
command economy
traditional economy
9
Economic inequality for profit rather than economic equality would be defended by
communist views
laissez-faire views
market-oriented views
fascist views
10
The father of communism
Smith
Hobbes
Mill
Marx
11
The main determinant in deciding what products to produce in a capitalist economy is
supply
demand
unit cost
cost of production
12
If a state has high unemployment a right wing capitalist would
increase social assistance to offset social disparity
increase interest rates to offset inflation
leave it alone to allow the market to correct itself
increase taxes to offset unemployment
13
In a mixed economy such as Canada's the goal of economic equity is pursued through
private ownership and foreign investment
transfer payments and progressive income tax rates
laissez-faire competition and decentralization
public ownership and collectivization
14
From a right-wing perspective centrally planned economies have the greatest difficulty
adjusting to the principles of economic cooperation
providing incentives for innovation
reducing inequalities in income
stabilizing fluctuations in the business cycle
15
Supporters of public enterprise systems see competition as negative force because
thwarts the operation of supply and demand in an economy
distributes more wealth to the consumer than to the producer
leads to inefficient use of goods and services
encourages a more equal distribution of wealth
16
Government intervention in the market system in Canada has resulted in all EXCEPT
a health care program
wide spread availability in low cost housing
consumer protection laws
increased income security
17
Which government action would be considered a move to the "left” on the economic spectrum?
Removing regulations that control the actions of businesses
Intro user fees for health services to reduce budget debt
Selling a government-owned service to private investors
Raising the rate of income tax paid by higher-income earners
18
Together the economic policies of Thatcher, Reagan, and Mulroney reflected a commitment to
universality
interventionism
centralization
deregulation
19
To counter recessionary trends a state with a market economy would most likely introduce
a significant increase to consumer interest rates
sizable layoffs in the civil service
greater tax exemptions and concessions to corporations
a reduction in small business subsidies
20
Which of the following operates outside of supply and demand to determine prices?
an increase in wages won by a union
a buyers' strike on the part of consumers
a monopolistic franchise granted to a utility firm
a drought in a major agricultural region

Social 30-1 Economics Flashcards | StudBud