Duplicate of Chapter 2 Test Review, MGH (MCGraw Hill)

Question 1

Which are disadvantages of communist economies?

Accepted Answer

all of the answers

Question 2

Which nation today is the most striking example of successful privatization?

Accepted Answer

China

Question 3

Which describes a disadvantage of a command economy?

Accepted Answer

Nothing stops gov't from producing things people don't need

Question 4

Which feature of a command economy distinguishes or separates it from a socialist economy?

Accepted Answer

"All" production is managed by the government

Question 5

Which of these is the most striking example of the costs and risks of pure capitalism?

Accepted Answer

the Great Depression

Question 6

What kind of economy offers uniformity in wages regardless of the occupation or individual?

Accepted Answer

Command and socialist economies

Question 7

Which places the economic systems in order from the least to most flexible?

Accepted Answer

command, socialism, free market

Question 8

In a transitioning economy, privatization tends to raise the standard of living because

Accepted Answer

people are more productive when it benefits them personally

Question 9

How was an Inuit hunter rewarded for his skill as a hunter?

Accepted Answer

He received the first cuts from a successful hunt

Question 10

Which of these economic systems have the least in common?

Accepted Answer

command economy and capitalism

Question 11

How are economic transactions shaped in a traditional economy?

Accepted Answer

Elders and ancestors make certain things are done correctly

Question 12

Which of these countries has an economy most similar to the former Soviet Union?

Accepted Answer

North Korea

Question 13

All societies have to embrace or deal with the problem of?

Accepted Answer

scarcity

Question 14

Which of these describes a disadvantage of a traditional economy?

Accepted Answer

New ways of doing things are discouraged

Question 15

Which of these statements is descriptive of a market economy?

Accepted Answer

Major decisions are made by individuals, not for them

Question 16

Which statement best describes the communist ideal?

Accepted Answer

Classless society where everyone works for the common good

Question 17

Which of these is a major advantage of a market economy?

Accepted Answer

There is a high degree of individual freedom

Question 18

What explains why mixed economies develop?

Accepted Answer

People become unhappy with aspects of their current economy

Question 19

Which type of economy is most prevalent today in the world?

Accepted Answer

Mixed

Question 20

What explains why products made under a command economy are likely to be low in quality ?

Accepted Answer

Workers have little incentive to make them work well

Question 21

Which of the following could raise the cost of production in a command economy?

Accepted Answer

A large and inefficient bureaucracy

Question 22

Which system of gov't is most likely to provide goods & services people could not afford

Accepted Answer

a socialist economy

Questions 22