Capitalism, Socialism, and Communism

Which is NOT a characteristic of Capitalism?

• Market Economy
• Supply and Demand
• Freedom of Competition
• Classless Society

Laissez-faire means...

• Hats off
• Hands around
• Hands off
• Hands on

The government or groups of workers might control these resources but the profits are divided among the people.

• Capitalism
• Communism 
• Socialism
• Mixed Economy

In a socialist economy, the wealth is distributed evenly among citizens.

• True
• False

This economic system is based on competition, profits, and self-interest.

• Socialism
• Communism
• Capitalism

In a "pure" communist society, who are the wealthiest and most powerful people?

• Intellectuals
• Business leaders
• Military leaders
• No One--every member of society is supposed to be equal

In a Communist country, workers have no ________ to work harder.

• Time
• Help
• Ability
• Incentive

How does socialism differ from capitalism?

• In socialism, the goverment controls the means of production; whereas, capitalism focuses on the private owner.
• In socialism, the goverment provides subsidies for small buisnesses; whereas, capitalism only depends on the corporations to spark the economy.
• In socialism, the goverment does not provide any form on humanitarian aid; whereas, capitalism funds small buisness with tax relief.
• In socialism, the government controls what the consumer can purchase; whereas, capitalism controls what the business can market.

According to the law of supply and demand, how does the scarcity of product that is in high demand affect prices?

• Scarcity of a high demand product stablizes the market value of the product.
• Scarcity of a high demand product increases the market value of the product.
• Scarcity of a high demand product neutralizes the market value of the product.
• Scarcity of a high demand product decreases the market value of the product.

According to the law of supply and demand, how does over-manufacturing of a product affect the price?

• Over-manufacturing reduces the price of a product.
• Over-manufacturing creates jobs to improve the economy.
• Over-manufacturing raises prices to offset production costs.
• Over-manufacturing leads to peaks in the business cycle.