U. S. Government: Democracy In Action

Chapter 26: Development of Economic Systems

Development of Economic Systems

Three of the characteristics of most capitalist economies are __________
A)private ownership, individual initiative, and competition.
B)central authority, private ownership, and individual initiative.
C)private ownership, freedom of choice, and "cradle to grave" benefits.
D)profit and loss, competition, and nationalized industries.
Socialist governments in developing countries often turn to nationalization, which means __________
A)focusing on welfare and education programs for the poor.
B)confiscating land and establishing agricultural communes.
C)taking control of industry by seizing private property.
D)redistributing wealth with no compensation to owners.
In the 1980s to break their reliance on foreign countries, some African nations __________
A)discouraged free enterprise in favor of socialism.
B)formed regional associations to promote trade.
C)borrowed $130 billion from foreign banks.
D)adapted socialism to African traditions.
Beginning in the mid-1980s, the Soviet economy faced all the following problems except __________
A)a GNP that grew only 2 or 3 percent a year.
B)its products failed to compete in world markets.
C)a huge oppressive state bureaucracy.
D)weak production in defense industries.
After six years of economic reforms, the Soviet Union suffered all the following setbacks except __________
A)overproduction of goods and deflation.
B)republics declaring their independence.
C)Communist hardliners seizing power.
D)citizens toppling statues of Communist leaders.
Supporters of unrestricted international trade claim that it __________
A)displaces selected industries.
B)protects jobs of domestic workers.
C)should be restricted by tariffs and quotas.
D)promotes efficient production.
Many people believed that the European Union's most important political project was the __________
A)dispatching of questionnaires to Eastern European countries.
B)launching of the new monetary unit called the "euro."
C)recruitment of new countries to join the union.
D)sharpening of Europe's economic competitiveness.
Rapid population growth in poor countries leads to the __________
A)overuse of soil, forests, and grazing land.
B)shrinkage of the gap between rich and poor areas.
C)migration of people from cities to rural areas.
D)political stability that prevents wars.
In a traditional economy, the rules for all economic activity are dictated by __________
A)a central authority.
B)state planning commissions.
C)habit and custom.
D)buyers and sellers.
Most countries in the world today have __________
A)communist economic systems.
B)capitalist economic systems.
C)socialist economic systems.
D)mixed economic systems.
US Government: Democracy In Action
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