Practice (old, don't touch)

Which of the following is most accurate regarding the aftermath of the industrial

revolution of the 18th and 19th centuries?

The ratio of global GDP produced by the Asian countries has shrunk relative to

the west.

Which of the following would be the best indicator for comparing the standard of

living across different countries?

GDP per capita

In his essay The End of History Francis Fukuyama contends:

Capitalism represents the superior economic system that proved its viability

upon the end of the Soviet Empire in the late 20th century.

The Great Moderation refers to:

The period of the late 20th and early 21st centuries that represent decreasing

government involvement in many western countries and greater stability in

economic performance.

The principal-agent problem is best exemplified by which of the following

scenarios?

A babysitter on duty invites her boyfriend over without telling the parents

employing her.

In a planned economy which of the following is most likely to occur if there is a

shortage of a product?

Long waiting lines for the product

Which type of incentive is most likely to be used in a planned economy?

Punitive

Which is the most consistent with the ideas of Karl Marx?

Economies evolve through revolution.

Which of the following are important questions that help define an economic

system?

All the above

Countries that have grown intensively typically have ___ when compared to

countries that have only grown extensively.

1. Higher levels of technology

2. Higher standards of living per person

3. Greater dynamic efficiency

4. All the above

Promoters of planned socialism prefer greater collective influence over decision-

making to counter capitalism's:

Income Inequality

Suppose Iceland has a Gini coefficient of 0.25 and Sweden has a Gini coefficient

of 0.33, which of the following statements is true?

The distribution of income is more equal in Iceland.

If a Marxist revolution were successful in a previously capitalist country, which of

the following is the new government least likely to do?

Set up a democratic form of government.

Use the table below to determine which answer is most accurate: KNOW

1. Countries 1 & 3 have "good economic outcomes" because they use economic

system A.

2. Countries 2 & 4 have "bad economic outcomes" because they have no trade.

3. Countries 1 & 3 have "good economic outcomes" because they have a rich

resource endowment.

4. The economic outcomes of the listed countries are related to their resource

endowment.

5. None of the above.

In Marx's Theory of History, which of the following is NOT a characteristic of the

Capitalist system?

Low material standard of living.

In a Command Economy, surpluses of product are typically corrected through:

Output cutbacks in next planning cycle

Which of the following best exemplifies a Centrally Planned Socialist System

today?

Cuba

Which of the following individuals calls for the eventual elimination of

government?

Karl Marx

Which of the following best describes one tenet of Marx's philosophy?

Economics precedes culture

In terms of equity, which of the following is scientifically true?

None of the above

Politically, which of the following countries identify as Marxist/Communist?

Cuba, China, North Korea

An economy that is producing at its potential is most accurately represented as:

Statically efficient

Models of market socialism involve all but which of the following?

A) Income and consumption equality

Socialism can be best defined as:

C) An economic system that involves state of collective ownership of resources and a centralized means of distribution

Which of the following is a typical goal of socialism?

Equality of consumption

Fukuyama's "End of History" is best described by which of the following?

D) The demise of the Soviet Union and advancing of capitalism across the globe.

Comparative Economics, in contrast to Comparative Economic Systems, studies:

A) international economic indicators holding the economic system constant

The principal-agent problem can be represented by which of the following scenarios?

a CEO acts against the best interest of the stockholders

The U.S. economy grew an average of 3 percent per year from 1900-2023 due to technological and capital advances. Over this same time frame the population grew on average 1%. Which of the following types of growth and efficiency best represents the U.S. over this time frame?

intensive growth with dynamic efficiency

Which of the following Philosophers would have aligned most with Marx in terms of his Theory of History?

Charles Darwin

Which of the following countries would be best compared to understand the effect of different economic systems on economic outcomes?

China vs. Hong Kong