Chap 5: T/F

Such names as communism, socialism, liberal, conservative, left wing, and right wing are used to describe political-economic theories.

• True

• False

It is capitalist doctrine that all the major factors of production should be owned by the government.

• True

• False

Socialism is Karl Max’s theory of social change directed toward the ideal of a classless society.

• True

• False

One reason for the collapse of the USSR was that it concentrated its resources on production of consumer goods and neglected production for the military.

• True

• False

The reunification of East Germany and West Germany was the spectacular result of communism’s collapse.

• True

• False

Under perfect capitalism, governments regulate privately owned businesses closely.

• True

• False

Politically, in the U.S., the term "conservative," is a person who wishes to minimize government activities.

• True

• False

An advantage state-owned companies have over privately owned business comes in the form of direct subsidies, payments by the government to their companies.

• True

• False

Privatization of industrial and commercial companies improves the solvency and stability of the banking sector in those countries.

• True

• False

Country Risk Assessment involves only political risks.

• True

• False