SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
1. Capitalism is characterized by . D
(A)centralization of authority within
close work-er/management
relationships
(B)worker participation in decision-making
and profit distribution
(C)a caring and enlightened leadership
devoted to paying workers fair wages
(D)private ownership and open competition
2. Economists believe that at least some level of
govern- A ment regulation is necessary in
capitalism in order to prevent market failures.
(A)True
(B)False
3. The is the social institution that organizes produc- C
tion, consumption, and trade of goods in a society.
(A)regime
(B)culture
(C)economy
(D)government
4. Socialism is characterized by . B
(A)centralization of authority within
close work-er/management
relationships
(B)collective ownership of the means of
production, with an emphasis on meeting
,SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
everyone's basic needs rather than generating wealth
(C)worker participation in decision-making
and profit distribution
,SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
(D)high tax rates and broad public social
welfare poli-cies
5. Which of the following is NOT true about marketD
economies?
(A)Some parts of society (police and other
public ser-vices) are in government hands
because markets are unlikely to provide them.
(B)Markets are regulated to protect consumers.
(C)Control over the means of production (land,
labor, capital) tends to be in private hands.
(D)The invisible hand of the market
guarantees effi-ciency through competition.
6. In the "circular flow" economic model . B
(A)businesses sell goods and services to
households and households buy goods and
services from busi-nesses
(B)businesses sell goods and services to
households and households sell their labor to
businesses
(C)as profits increase for business, these
"trickle down" in the form of higher
wages for workers
(D)consumer demand for goods and
services, and businesses' ability to provide
these goods and ser-vices, produce an
equilibrium based on supply and demand
forces
, SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
7. Which of the following is NOT one of the key questions
A
decided by economic systems?
(A)The level of taxes on goods and services
(B)What goods or services will be produced
A’S
1. Capitalism is characterized by . D
(A)centralization of authority within
close work-er/management
relationships
(B)worker participation in decision-making
and profit distribution
(C)a caring and enlightened leadership
devoted to paying workers fair wages
(D)private ownership and open competition
2. Economists believe that at least some level of
govern- A ment regulation is necessary in
capitalism in order to prevent market failures.
(A)True
(B)False
3. The is the social institution that organizes produc- C
tion, consumption, and trade of goods in a society.
(A)regime
(B)culture
(C)economy
(D)government
4. Socialism is characterized by . B
(A)centralization of authority within
close work-er/management
relationships
(B)collective ownership of the means of
production, with an emphasis on meeting
,SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
everyone's basic needs rather than generating wealth
(C)worker participation in decision-making
and profit distribution
,SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
(D)high tax rates and broad public social
welfare poli-cies
5. Which of the following is NOT true about marketD
economies?
(A)Some parts of society (police and other
public ser-vices) are in government hands
because markets are unlikely to provide them.
(B)Markets are regulated to protect consumers.
(C)Control over the means of production (land,
labor, capital) tends to be in private hands.
(D)The invisible hand of the market
guarantees effi-ciency through competition.
6. In the "circular flow" economic model . B
(A)businesses sell goods and services to
households and households buy goods and
services from busi-nesses
(B)businesses sell goods and services to
households and households sell their labor to
businesses
(C)as profits increase for business, these
"trickle down" in the form of higher
wages for workers
(D)consumer demand for goods and
services, and businesses' ability to provide
these goods and ser-vices, produce an
equilibrium based on supply and demand
forces
, SOC 101 EXAM #3 ANSWER KEY Q’S &
A’S
7. Which of the following is NOT one of the key questions
A
decided by economic systems?
(A)The level of taxes on goods and services
(B)What goods or services will be produced
