Section 2 Test Part 1: Question Preview (ID: 13280)

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Proletariat is the term used by Karl Marx for who?
a) workers
b) poor people
c) wealthy people
d) bosses

National defense falls under the ______________ function of government.
a) Legal and Social Framework
b) Provide Public Goods and Services
c) Stabilize the Economy

Which of the following does the Role of Government not consist of?
a) Providing health insurance
b) Correcting for Externalities
c) Maintain Competition
d) Legal and Social Framework

Karl Smith was the father of socialist thinking.
a) True
b) False

Adam Smith was an individual who believed that the government should have control over the people in the economy.
a) True
b) False

The circular flow economic model represents a traditional economic flow.
a) True
b) False

Capitalism has spread to nearly every part of the world in a process that is known as _______________.
a) Globalization
b) Supply and Demand
c) Free Market
d) Free Enterprise

In a market economy, individuals choices are considered to be a part of how and for whom, but who decides to produce the good?
a) Businesses
b) Consumers
c) Government

A _____________ economy is some element of state control over the economy combined with the free enterprise.
a) Market
b) Mixed
c) Command
d) Traditional

In the circular flow model, everything flows from a business to a household on a ____________ basis.
a) Continual
b) irregular
c) informal
d) unpredictable

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