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BUS 404 Stern Midterm 1 (Ch. 1-3) Actual Exam Questions 100% Correct Answers Verified 2024 Version €8,29
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BUS 404 Stern Midterm 1 (Ch. 1-3) Actual Exam Questions 100% Correct Answers Verified 2024 Version
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The American financial community's near collapse in late 2008 had been most directly ignited by the subprime mortgage-crisis - True Capitalism in American was built on the strong philosophical foundation of personal freedom and private property rights - True Democratic capitalism and state capi...

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BUS 404 Stern Midterm 1 (Ch. 1-3) Actual
Exam Questions | 100% Correct Answers
| Verified 2024 Version
The American financial community's near collapse in late 2008 had been most directly ignited by the
subprime mortgage-crisis - ✔✔True



Capitalism in American was built on the strong philosophical foundation of personal freedom and private
property rights - ✔✔True



Democratic capitalism and state capitalism trade with each other for mutual advantage but are
economic and political rivals - ✔✔True



Capitalism features economic cooperation and varying degrees of centralized control - ✔✔False



The term collectivism embraces communism and socialism and similar philosophies on the left side of
the political or economic spectrum - ✔✔True



Political scientist Benjamin Barber believes that capitalism drags us into decadence by encouraging us to
buy as many unnecessary products as we can manage - ✔✔True



Socialism embraces totalitarianism while calling for aggressive government intervention to correct
economic and social ills - ✔✔False



Capitalists fear the irrationality of a society based on competition and unrestrained pursuit of industrial
growth - ✔✔False



Capitalists consider class distinctions unjust - ✔✔False

,Communists are convinced that problems of market failure mean that the free market is simply
incapable of meeting the needs of all segments of society - ✔✔False



To pay for its comprehensive welfare benefits, the United States takes 50.1 percent of its national
income in taxes, the highest rate of any industrialized nation - ✔✔False



Sweden and the other Scandinavian states rely on wise government spending as their key ingredient in a
successful market-based economy - ✔✔True



The pure free market approach adds all forms of government including regulatory agencies, consumer
protection, environmental rules, and antitrust law to our business system and our society - ✔✔False



American capitalism, despite its extraordinary success, is criticized for problems of poverty, inequality,
and unfairness - ✔✔True



It is a well-known fact that the United States ranks well on standard social measure not so well on
standard economic measures - ✔✔False



Taking the privatization movement a step further, state and local governments are selling or leasing
existing roads to private companies - ✔✔True



Privatization often brings substantially reduced costs and improved expertise - ✔✔True



China's reliance on cheap labor to drive its economy still remains unchallenged as other nations are
unable to undercut the Chinese advantage - ✔✔False



Extravagant wealth, side-by-side with punishing poverty, is perhaps the greatest disappointment and
injustice, from the critic's point of view, in the global advance of capitalist principles - ✔✔True



In the context of capitalism in America, which of the following most likely led the government to curb
the power of big business? - ✔✔Emergence of monopolistic abuse

, ____ in the United States, Japan, Denmark, and other nations favors business to create wealth and
government to regulate as needed - ✔✔Democratic capitalism



____ in countries such as Russia, China, and Saudi Arabia employs the market to build wealth, which, in
turn is controlled and distributed by the state for its political purposes - ✔✔State capitalism



Which of the following countries follows a communist form of government? - ✔✔China



____ was particularly concerned about the growing imbalance between rich and poor and felt that the
pursuit of wealth and self-interest would erode society's moral core - ✔✔Karl Marx



Socialism has been associated with _____ - ✔✔democratic governments and peaceful change



T/F: Socialists aim to retain the benefits of industrialism while abolishing the social costs often
accompanying the free market - ✔✔True



Which of the following statements about socialists is true? - ✔✔Class distinctions are anathema to
socialists



Which of the following statements corresponds to Karl Marx's beliefs? - ✔✔The mode of production in
material life determines the general character of the social, political, and spiritual processes of life



Which of the following is true of Robert Putnam's observations on social capital? - ✔✔Putnam observed
that virtually every measure of social interaction fell significantly from roughly 1975 to 2000



Identify the underlying reason why socialists advocate income supports, free education, free health care,
generous sick pay, and family planning. - ✔✔Socialists believe that the economy must be directed
toward the general interest rather than left free to multiply the welfare of successful capitalists



Which of the following views was advocated by Ayn Rand, the philosopher and novelist? - ✔✔The
necessary categories of government were only three in number; the police, the armed services, and the
law courts

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