New Economic Theories

In terms of production, what best describes the difference between capitalism and socialism? Capitalism is a system in which goods are made by private businesses, but socialism stresses government control over production. Capitalism is a system in which the government controls production, but socialism stresses production by private businesses. Capitalism is a system in which people pursue their own self-interests, but socialism stresses an equal distribution of wealth. Capitalism is a system in which government should "plan" the economy, but socialism stresses that free market dictates production.

Which best explains how a mixed economy addressed problems that arose from capitalism? Laissez-faire principles remained, but government passed laws promoting worker safety. Government interference continued, and new laws allowed workers to own companies. Supply and demand remained, and government took control of the means of production. Government regulation was minimal, but new laws protected workers and their standard of living.

What moderate reforms did European socialists support? Check all that apply. -assistance for the poor -working class revolution -better working conditions -lack of protections for unions -minimum wage laws -lack of regulation for prices

In a dictatorship of the proletariat, who controls the government? dictators industrialists business owners working classes

The following passage is from The Communist Manifesto written by Karl Marx in 1848. "Let the ruling classes tremble at a Communist revolution. The proletarians [workers] have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!" Which best explains what Marx hoped to get across? Workers are slaves and should be inspired to revolt. Workers should unite in the communist movement. Workers should scare rulers into giving up their wealth. Workers must be asked to incite a revolution against the rich.

Karl Marx developed the economic theory of socialism. capitalism. utopianism. communism.

What two principles form the basis for capitalism? private ownership and equal wealth free markets and shared property private ownership and free markets free markets and government oversight

Adam Smith believed that fair prices for goods are determined in a capitalist system through competition between businesses. by government regulation of businesses. by setting limits on imports and exports. through competition between consumers.

Workers competed for jobs in the model factory started by Robert Owen because he overpaid them. he built schools. he was famous. he guaranteed jobs.

The three main ideas behind capitalism as defined by Adam Smith are free markets, laissez-faire, and fair taxes. competition, self interest, and laissez-faire. laissez-faire, regulation, and self interest. competition, free markets, and trade limits.