Economics: Systems, Organizations, etc.

Question 1

Adam Smith believed in a system of peace, easy ____, and a tolerable administration of justice.

Accepted Answer

taxes

Question 2

In the 1980s, "New Coke" proved unpopular, so Coca Cola quit making it. This is an example of -

Accepted Answer

consumer sovereignty

Question 3

This type of business offers the least amount of risk, since it is a legal person.

Accepted Answer

corporation

Question 4

One of the problems with socialism is -

Accepted Answer

there is no incentive to work hard and achieve

Question 5

The four major economics systems are traditional, free market, mixed and -

Accepted Answer

command

Question 6

________ resources are things like money, buildings, equipment, and tools.

Accepted Answer

Capital

Question 7

What kind of business can an entrepreneur start?

Accepted Answer

all of the answers above

Question 8

Mao's Cultural Revolution from 1966-1976 -

Accepted Answer

resulted in the deaths and imprisonment of millions

Question 9

Under socialism, government must use _____ to achieve the ideal of equality.

Accepted Answer

force

Question 10

A command economy is called that because -

Accepted Answer

the economy is under government direction and command

Question 11

Adam Smith wrote The Theory of Moral Sentiments and _

Accepted Answer

The Wealth of Nations

Question 12

In a free market economy, price is determined by -

Accepted Answer

supply and demand

Question 13

The Cambodian Genocide, in which millions died, happened when -

Accepted Answer

Communist dictator Pol Pot collectivized farms by force

Question 14

What did Adam Smith mean by the "invisible hand"?

Accepted Answer

a man pursuing his own interest benefits society unknowingly

Question 15

Adam Smith believed that when each person pursued his own _____ _______ society would benefit.

Accepted Answer

self interest

Question 16

Chinese universities now teach the free market ideas of -

Accepted Answer

Adam Smith

Question 17

Private property, profit, competition and consumer sovereignty are traits of the free market &

Accepted Answer

of the U.S. economy

Question 18

In a free market economy -

Accepted Answer

private people own property and resources

Question 19

Mao's "Great Leap Forward" of forced collectivization -

Accepted Answer

resulted in an historic famine and the deaths of millions

Question 20

Private property, competition, consumer choice, and profit are key elements of -

Accepted Answer

free market economies

Question 21

A mixed economy has a private sector and a ____ sector.

Accepted Answer

public

Question 22

In a traditional economy -

Accepted Answer

people often do the same jobs their ancestors did

Question 23

Consumer sovereignty means that -

Accepted Answer

through their purchases consumers decide what is produced

Question 24

Lack of consumer choice is a problem in a -

Accepted Answer

command economy

Question 25

Hong Kong became successful and prosperous because of John Cowperthwaite's theory of -

Accepted Answer

benign neglect

Question 26

Which economic system has greatly reduced world poverty in the last forty years?

Accepted Answer

free market capitalism

Question 27

Millions starved to death in Ukraine when Stalin -

Accepted Answer

forced people onto collective farms

Question 28

The goal of socialism is -

Accepted Answer

equality of outcome

Question 29

A business owned by one owner, who takes all the risks and all the profits, is a -

Accepted Answer

proprietorship

Question 30

Profit consists of -

Accepted Answer

earnings after all expenses have been paid

Economics: Systems, Organizations, etc.

Questions 30

Economics: Systems, Organizations, etc.

Questions 30