FIRST HALF (e1, quiz sarah) 1/2

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

Which of the following would be most likely in a Marxist Communist state?

Elimination of all religion and national boundaries

Capitalism is generally characterized by which of the following?

individual property rights, material incentives, democracy, and decentralized information.

Adverse selection and moral hazard are problems related to which of the following economic institutions? 

 

decision-making

The Marxist view suggests that if a coffee thermos sells in the marketplace for $40 and the owner of the business incurs $30 of costs to make the product, the owner of a business is entitled to ______ upon selling the product. 

$0 of surplus value

Imagine an economy that grew an average of 3 percent per year from 1950-2025 due to annual population increases of 4% . Which of the following types of growth best represents the country over this time frame? 

extensive growth

Which of the following is NOT a typical economic outcome pursued by modern national economies?  

Job guarantees for experienced workers willing to work full-time

According to Karl Marx: 

Economies evolve through history when the relations of production conflict with the forces of production.

Which of the following could represent a potential challenge to the Marxist theory of Communism? 

firms are often unionized.

Workers often choose to work in large-scale factories owned by large corporations.

Workers can buy stock in large corporations and become owners, sharing in the profits.

 

People to not appear to share incomes equally in areas where they voluntarily can, such as households.

 

All the other choices

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

A CEO acts against the best interests of the board of directors.

 

A corporate board member acts against the best interest of the shareholders.

 

the Secretary of Defense acts against the best interests of the President.

 

All the other choices

One of the most often cited reasons for supporting socialism is its___________: 

fairness in allocating income

Imagine the United States has a Gini coefficient of 0.60 and Norway has a Gini coefficient of 0.25 Which of the following statements is objectively true?

The distribution of income is more equal in Norway.

The economic system that endows property rights upon the individual and allows them to direct their property as they see fit, is best labeled:   

Market Capitalism

The "Clash of Civilization" described by Samuel Huntington considers future wars to be:

 

defined by culture that transcend national boundaries.

In a centrally planned economy, which of the following outcomes is most likely to occur in an economic downturn?  

product shortages

The False Consciousness of Capitalism suggests a capitalist is: 

 

not inherently immoral but acts as such due to the superstructure of society.

Say the Chinese economy is currently at 20 trillion dollars in GDP, grows at a rate of 6.5% annually, has a population of 1 billion, and a population growth rate of 3.5% annually. From this data we can conclude:

 

Per capita GDP will double in about 23 years.

In a ______economy, surpluses in production would be corrected by ______prices. 

 

market, lower

According to Marxist theory?

 

Communism is the highest order economic system.

Which of the following best exemplifies a social system?

religion

According to Marxist theory, which of the following is a characteristic of a Communist system?  

 

Lack of desire for material abundance and wealth.

Based on the introduction to the class, which of the following is least likely to be discussed in this course? 

 

The morality of various economic systems

Social Democrats in Germany are a party most similar to the _______in England and the _______in the U.S. 

Labor, Democratic

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

China vs. Taiwan

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.

"Rules of the game" can also be described as economic:

 

Institutions

The ___________represents the principal and the _______________represents the agent:

 

Stockholder, Board of Directors

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.

Which of the following current or previously existing countries best represents the idea of market socialism?

Yugoslavia

Which of the following is NOT a typical economic outcome pursued by modern nation-economies?

 

Equality of Income

Which of the following would be the best indicator for comparing the standard of living across different countries?

 

Real Per Capita GDP

If the U.S. is growing it’s GDP per capita and producing at full employment it would be most accurately represented as:

Producing at 80% capacity

 

Statically efficient

 

Dynamically efficient

Say the Chinese economy is currently 20 trillion dollars in GDP, grows at a rate of 8% annually, has a population of 1 billion, and a population growth rate of 1% annually. From this data we can conclude:

 

Per capita GDP will double in 10 years.

Which of the following is the least objective metric of success in evaluating different economicnsystems?

 

Happiness Index

Promoters of planned socialism prefer greater collective influence over decision-making to counter capitalism's _________________:

 

“Unfair” income inequality

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