Philosophy 305 - Business Ethics » Fall 2022 » Chapter 4 Test Capitalism

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Question #1
Capital is that money that is invested for the purpose of making more money.
A.   TRUE
B.   FALSE
Question #2
According to Adam Smith, the division of labor decreases economic activity.
A.   TRUE
B.   FALSE
Question #3
What we call capitalism did not fully emerge until the Renaissance in Europe during the 15th and 16th centuries.
A.   TRUE
B.   FALSE
Question #4
Critics sometimes argue against capitalism on the grounds that "competition is not a good" because trying to do well and trying to beat others are two different things.
A.   FALSE
B.   TRUE
Question #5
Many economists are concerned that the growing trade deficit makes the U.S. vulnerable to
A.   economic extortion.
B.   terrorist attacks.
C.   ease.
D.   depression.
Question #6
Which of the following historical stages of capitalism came first?
A.   mercantile
B.   industrial
C.   financial
D.   state welfare
Question #7
Which of the following accurately reflects the concept of Marxism?
A.   It is only within a capitalist economic system that workers are not alienated from the products of their labor.
B.   Within a capitalist economic system, the activity of labor is an end in itself and, as a result, has intrinsic value.
C.   Labor is alienated in a capitalist economic system (in part) because, in such a system, the labor of a worker undermines the ability of the worker to function autonomously.
D.   Only workers who are poorly paid for their labor are alienated.
Question #8
According to the authors of your textbook, the profit motive
A.   is no longer a key feature of capitalism.
B.   is a fundamental feature of all societies.
C.   must be checked by competition if society is to benefit.
Question #9
Utilitarians reject the very idea of a natural right to property.
A.   TRUE
B.   FALSE
Question #10
Adam Smith claims that the proper role of governments is to restrict and regulate the self-interested behavior of business organizations for the common good.
A.   FALSE
B.   TRUE
Question #11
Karl Marx believed that
A.   capitalism no longer exploits workers.
B.   workers are alienated from their products, but not from themselves or other people.
C.   industrialization does away with alienation.
D.   under capitalism workers are alienated in several ways.
Question #12
None of the specific measures proposed by Marx and Engels in the Communist Manifesto have been implemented in capitalist countries.
A.   TRUE
B.   FALSE
Question #13
The U. S. trade deficit has shrunk significantly in recent decades.
A.   FALSE
B.   TRUE
Question #14
It appears that more Americans are putting aside job success to
A.   be with their families.
B.   get education.
C.   travel abroad.
D.   win the lottery.
Question #15
In contrast to traditional manufacturers, many companies have become hollow corporations who
A.   prefer their own production base and not a network of small operators both foreign and domestic.
B.   outsource and likely produce only the package and the label .
C.   make nearly all crucial parts.
D.   increase their manufacturing operations in the U.S.
Question #16
Worker control socialism is a hybrid economic system containing both a marketplace and a profit system.
A.   FALSE
B.   TRUE
Question #17
The capitalism that we know today in the United States is a "pure" form of laissez-faire capitalism.
A.   TRUE
B.   FALSE
Question #18
Capitalism is possible without private property.
A.   TRUE
B.   FALSE
Question #19
Socialism is an economic system characterized by public ownership of property and a planned economy.
A.   TRUE
B.   FALSE
Question #20
Implicit in capitalism is the view that human beings aim to maximize their economic self-interest.
A.   FALSE
B.   TRUE
Question #21
Marxism states
A.   socialism will eventually be replaced by financial capitalism.
B.   only workers who are poorly paid in a capitalist system are alienated.
C.   capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.
D.   the means of production should be placed under the control of the bourgeoisie.
Question #22
Even for employees who are paid handsomely for their efforts,  Marx said their work would ultimately prove to be
A.   tireless.
B.   expensive to them.
C.   profitable to them.
D.   meaningless to them.
Question #23
Though many jobs are outsourced, many economists believe
A.   the United States is in trouble.
B.   Mexico is the place to work.
C.   the US economy will create new jobs.
D.   manufacturing will make a comeback.
Question #24
As a classical moral justification of capitalism, the natural right to property is a kind of utilitarian justification.
A.   TRUE
B.   FALSE
Question #25
One reason for believing that real-world capitalist economies do not live up to their own ideal of competition is
A.   monopolies control almost all areas of economic life.
B.   the widespread existence of government subsidies and protective tariffs.
C.   so many small companies go bankrupt.
D.   the outsourcing of jobs.

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