ECON 304 WITH 90 EXAM QUESTIONS & CORRECT
ANSWERS
What is capitalism?
Select one:
a. The use of money to make money.
b. An oppressive system that allows the rich to exploit the weak.
c. The predominant system in countries like North Korea, Vietnam, Cuba, and the
former Soviet Union.
d. A system which has largely died out.
e. The market based system where governments maximize exports and minimize
imports. - ANSWER-a
An early precursor to modern capitalism was_______?
Select one:
a. Merchant Capitalism
b. Socialism
c. Feudalism
d. Slavery
e. Mercantilism - ANSWER-a
True or False: New methods of production led to a divergence between work and
leisure.
,Select one:
a. True
b. False - ANSWER-a
Which of the following was NOT a component of wage labor?
Select one:
a. They were fired when companies failed to compete on the market.
b. They played a role in production as well as consumption.
c. They were free and unfree.
d. They payed for attractions and travel under the new system.
e. They were exactly the same as slaves, and were forced to reside on their master's
land. - ANSWER-e
In Fulcher, what factors manipulated markets during the 17th century?
a. Buying up stocks and holding back sales.
b. Government controlled mercantilism and maximum exportation. Incorrect
c. The establishment of eco-friendly cooperatives.
d. Good wage rates and government welfare programs.
e. Violent worker revolts and bloody confrontations with the monarchy. -
ANSWER-a
True or False: Capitalists existed before capitalism.
Select one:
,a. True
b. False - ANSWER-a
Which of the following is the best way to avoid brutal competition?
Select one:
a. Allowing all businesses to fail, good or bad.
b. Mergers and take-overs, which put production into fewer hands.
c. There are no ways of reducing competition. Capitalism is a free-for-all.
d. Selling bankrupt companies to foreign investment.
e. Nationalizing all industries under the government. - ANSWER-b
What allowed Nick Leeson to continually exploit "futures" on the Singapore Stock
Exchange?
Select one:
a. Special insider knowledge into the prices of futures.
b. Upper management had a bad understanding of financial institutions.
c. Barings overlooked mistakes in a quest for profit.
d. B and C.
e. A and C. - ANSWER-d
What do all three examples of capitalism (East Indiaman, Cotton Looms, and
Baring Securities) have according to Fulcher?
Select one:
, a. The use of new technologies and labor practices to increase production.
b. The Dutch East India Company.
c. An employee screwing over the company they work for.
d. Selling derivatives.
e. The investment of money in order to make a profit. - ANSWER-e
In capitalist production, employers sought to __________output and
____________cost.
Select one:
a. Minimize; maximize
b. Maximize; minimize
c. Maximize; maximize - ANSWER-b
Britain was the first country to embrace capitalism. Which of the following was the
leading reason for the establishment of a capitalist economy?
Select one:
a. Industrialization made capitalism the best system for establishing a market.
b. Britain had capitalism since the 12th century.
c. The establishment of wage labor force and relationships with employers.
d. Both A and C.
e. All of the above. - ANSWER-d
Which of the following was NOT a contributing factor to early class organization?
ANSWERS
What is capitalism?
Select one:
a. The use of money to make money.
b. An oppressive system that allows the rich to exploit the weak.
c. The predominant system in countries like North Korea, Vietnam, Cuba, and the
former Soviet Union.
d. A system which has largely died out.
e. The market based system where governments maximize exports and minimize
imports. - ANSWER-a
An early precursor to modern capitalism was_______?
Select one:
a. Merchant Capitalism
b. Socialism
c. Feudalism
d. Slavery
e. Mercantilism - ANSWER-a
True or False: New methods of production led to a divergence between work and
leisure.
,Select one:
a. True
b. False - ANSWER-a
Which of the following was NOT a component of wage labor?
Select one:
a. They were fired when companies failed to compete on the market.
b. They played a role in production as well as consumption.
c. They were free and unfree.
d. They payed for attractions and travel under the new system.
e. They were exactly the same as slaves, and were forced to reside on their master's
land. - ANSWER-e
In Fulcher, what factors manipulated markets during the 17th century?
a. Buying up stocks and holding back sales.
b. Government controlled mercantilism and maximum exportation. Incorrect
c. The establishment of eco-friendly cooperatives.
d. Good wage rates and government welfare programs.
e. Violent worker revolts and bloody confrontations with the monarchy. -
ANSWER-a
True or False: Capitalists existed before capitalism.
Select one:
,a. True
b. False - ANSWER-a
Which of the following is the best way to avoid brutal competition?
Select one:
a. Allowing all businesses to fail, good or bad.
b. Mergers and take-overs, which put production into fewer hands.
c. There are no ways of reducing competition. Capitalism is a free-for-all.
d. Selling bankrupt companies to foreign investment.
e. Nationalizing all industries under the government. - ANSWER-b
What allowed Nick Leeson to continually exploit "futures" on the Singapore Stock
Exchange?
Select one:
a. Special insider knowledge into the prices of futures.
b. Upper management had a bad understanding of financial institutions.
c. Barings overlooked mistakes in a quest for profit.
d. B and C.
e. A and C. - ANSWER-d
What do all three examples of capitalism (East Indiaman, Cotton Looms, and
Baring Securities) have according to Fulcher?
Select one:
, a. The use of new technologies and labor practices to increase production.
b. The Dutch East India Company.
c. An employee screwing over the company they work for.
d. Selling derivatives.
e. The investment of money in order to make a profit. - ANSWER-e
In capitalist production, employers sought to __________output and
____________cost.
Select one:
a. Minimize; maximize
b. Maximize; minimize
c. Maximize; maximize - ANSWER-b
Britain was the first country to embrace capitalism. Which of the following was the
leading reason for the establishment of a capitalist economy?
Select one:
a. Industrialization made capitalism the best system for establishing a market.
b. Britain had capitalism since the 12th century.
c. The establishment of wage labor force and relationships with employers.
d. Both A and C.
e. All of the above. - ANSWER-d
Which of the following was NOT a contributing factor to early class organization?
