How are governmental systems sometimes confused with economic systems?

• Certain types of government are closely related to or develop with certain types of economic systems

• Economic systems always control governments

• Governments never influence economies

• Economic systems are only about politics

According to John Locke, what natural rights do people have?

• Life, liberty, and property

• Wealth, fame, and power

• Health, education, and transportation

• Food, shelter, and clothing

What did Adam Smith argue about the role of government in business and industry?

• People should be allowed to operate as they wish and keep the proceeds of their work

• Government should control all businesses

• Only the wealthy should own businesses

• Businesses should not compete with each other

Which book by Adam Smith formed the basis for industrial capitalism?

• The Wealth of Nations

• Democracy in America

• The Social Contract

• The Republic

How are democracy and capitalism described as being related in the United States?

• They developed together, but do not have to go hand in hand

• They are always opposed to each other

• Democracy controls capitalism completely

• Capitalism eliminates the need for democracy

Why might capitalism not always lead to prosperity for all, according to the text?

• Great gaps in wealth can exist between the richest and poorest

• Capitalism guarantees equal wealth for everyone

• Capitalism eliminates all government benefits

• Capitalism always results in economic decline

What is socialism?

• An economic system where the means of generating wealth are owned by the government and not by private individuals.

• An economic system where all businesses are owned by private individuals.

• A political system where only one party is allowed.

• A system where the government does not interfere in the economy.

In a socialist country, who typically owns factories, large farms, and banks?

• Private individuals

• The government

• Foreign investors

• Religious organizations

What is an oligarchy, as described in the context of socialist countries?

• A government run by all citizens equally

• A government run by a single ruler

• A government run by members of a certain political party or ruling elite

• A government run by religious leaders

Why are public goods provided by the government?

• Because private businesses can always provide them efficiently

• Because they are only needed by a few people

• Because it is difficult for private businesses to provide them for everyone and collect payment

• Because they are not important for society