HumanitiesNew Economic Theories
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New Economic Theories

Axel Rodriguez avatar Axel Rodriguez
21 August 2022
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10 test answers

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question
As economic theories, socialism and communism sought to
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even out inequalities of wealth.

Explanation: promote economic, social, and political equality.Both socialism and communism are based on the idea that everyone in society should be treated equally and have the same opportunities. They both seek to promote economic, social, and political equality.
question
What moderate reforms did European socialists support? Check all that apply.
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-assistance for the poor -better working conditions -minimum wage laws

Explanation: -Support for a mixed economy-Support for a welfare state-Support for nationalization of key industries-Support for worker cooperativesSocialists in Europe tended to support moderate reforms as opposed to more radical ones. This included support for a mixed economy, in which both the private sector and the public sector would play a role; support for a welfare state, in which the government would provide social services and safety nets for citizens; support for nationalization of key industries, such as utilities and transportation; and support for worker cooperatives, in which employees would have a say in how their workplace was run.
question
Which problems arose as a result of capitalism with little government oversight? Check all that apply.
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-Businesses eventually exploited the working class. -Workers who were injured on the job were not protected. -There were vast inequalities between workers and owners. -Big companies drove small companies out of business.

Explanation: -Many people became very wealthy while others remained poor-Working conditions were often poor and dangerous-Child labor was common-People were often exploited for their labor
question
Adam Smith believed that fair prices for goods are determined in a capitalist system
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through competition between businesses.

Explanation: by the interaction of supply and demand in the marketplace.Adam Smith believed that in a capitalist system, fair prices for goods are determined by the interaction of supply and demand in the marketplace. He believed that the market would naturally adjust to ensure that prices are fair, and that the government should not interfere in the market.
question
In The Communist Manifesto, Karl Marx hypothesized that capitalism would fail if workers________.
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revolted

Explanation: In The Communist Manifesto, Karl Marx hypothesized that capitalism would fail if workers were unable to form unions and negotiate better wages and working conditions. He believed that the capitalists would eventually become so wealthy that they would be unable to invest in new businesses and would instead hoard their money. This would lead to a decrease in demand for goods and services, and workers would be laid off. As the unemployed workers became more desperate, they would be willing to work for lower wages, and the cycle would continue until the workers were so poor that they could no longer afford to live.
question
Along with Karl Marx, the German philosopher who helped write The Communist Manifesto was ________
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Friedrich Engels

Explanation: The German philosopher who helped write The Communist Manifesto was Friedrich Engels.
question
According to Karl Marx, the economic ideas behind socialism would lead to a
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communist revolution.

Explanation: more classless, egalitarian societyIn Karl Marx's view, socialism is a natural result of the economic ideas behind it. These ideas would lead to a more classless, egalitarian society in which people would work together for the common good.
question
An economic theory that stresses government management of the production and distribution of goods is ________.
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Socialism

Explanation: The theory is socialism.
question
In a dictatorship of the proletariat, who controls the government?
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working classes

Explanation: In a dictatorship of the proletariat, the working class holds power through the state. This power is used to repress the bourgeoisie and build socialism.
question
Karl Marx developed the economic theory of
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communism.

Explanation: socialismKarl Marx's economic theory of socialism is based on his belief that the working class will rise up and overthrow the capitalist system. He believed that the working class would be able to create a more equal society, in which there would be no class distinctions. Marx's theory has been used to justify many socialist revolutions, including the Russian Revolution of 1917.