Question 1

The price of a good, according to Marx, equaled the sum of _______ and the _______ resulting from production of the good.

Accepted Answer

A)   capital costs; profits
B)   a return to labor; surplus value
C)   prices of factors; surplus value
D)   intermediate prices; costsE) A) and C)
F) All of the above

Question 2

The Case in Point on socialist cartoons suggests that Soviet citizens recognized that:

Accepted Answer

A)   inefficiency resulted because of failure to take in costs of production.
B)   it was difficult for businesses to incorporate new technologies in a command economy.
C)   their system of a command economy failed to respond to consumers' demands.
D)   all of the aboveE) None of the above
F) B) and C)

Question 3

Discuss the relative successes and failures of Russia and China in their efforts to make the transition to market capitalism. Include in your answer an explanation of the different approaches and their different outcomes to date.

Accepted Answer

The transition to market capitalism in R...

Question 4

Following the collapse of the command socialist system in 1991, prices in Russia:

Accepted Answer

A)   increased by as much as 10-fold in 6 months.
B)   shot up because banks made too many loans and increased the money supply too much.
C)   increased rapidly during the transition because price floors had been set too low; once price liberalization began, they subsequently rose very rapidly.
D)   fell as fear of the future led Russian consumers to reduce their consumption.E) A) and D)
F) All of the above

Question 5

The political arm of command socialism was the Communist Party.

Accepted Answer

A) True 
 B)False

Question 6

Decisions in the former Soviet Union led to inefficiency in part because consumer preferences were ignored.

Accepted Answer

A) True 
 B)False

Question 7

One method of privatization used by command socialist economies in the transition to free markets is to:

Accepted Answer

A)   establish a system of money and capital markets.
B)   allow the central bank to regulate the money supply.
C)   give away ownership shares for all government property.
D)   sell domestic currency on the foreign exchange market.E) None of the above
F) A) and B)

Question 8

According to Karl Marx:

Accepted Answer

A)   the surplus value that belongs to capitalists is stolen by workers.
B)   political forces are the prime cause of fundamental historical change.
C)   entrepreneurs will eventually rise and overthrow the capitalistic system.
D)   the value of any commodity is determined by the amount of labor time used in its production.E) A) and B)
F) All of the above

Question 9

Marx held that, ultimately, the price of a good or service:

Accepted Answer

A)   equaled a return to labor plus a profit:
B)   was determined by the intersection of demand and supply.
C)   was determined by the competing interests in the marketplace.
D)   equaled wages minus surplus value.E) A) and D)
F) A) and C)

Question 10

The Russian term for restructuring is:

Accepted Answer

A)   perestroika.
B)   gorbachev.
C)   ziyang.
D)   gosplan.E) A) and B)
F) A) and C)

Question 11

According to Marx's interpretation of history, political forces outweigh economic ones as the main cause of change.

Accepted Answer

A) True 
 B)False

Question 12

China's transition to market capitalism has been characterized by:

Accepted Answer

A)   three tiers to its economic system.
B)   free market exchanges for all production.
C)   very slow economic growth.
D)   increasingly decentralized decisionmaking.E) A) and B)
F) A) and C)

Question 13

The Communist Manifesto predicted the:

Accepted Answer

A)   breakup of the Soviet Union.
B)   globalization of capitalism.
C)   division of society into numerous hostile camps.
D)   fall of communism.E) C) and D)
F) B) and D)

Question 14

The Great Leap Forward was an economic disaster for China.

Accepted Answer

A) True 
 B)False

Question 15

A micro-level problem of Russia's transition has been

Accepted Answer

A)   high inflation.
B)   high unemployment.
C)   lack of encouragement of entrepreneurship.
D)   lack of corruption.E) All of the above
F) A) and C)

Question 16

According to Marx, the value of a commodity is determined:

Accepted Answer

A)   exclusively by the labor required to produce it.
B)   exclusively by capitalists.
C)   exclusively by its demand.
D)   by both labor and demand.E) C) and D)
F) None of the above

Question 17

From 1921-1924, Russia experienced a period called the New Economic Policy, which essentially was a return to the market as an allocative mechanism.

Accepted Answer

A) True 
 B)False

Question 18

Socialism in Yugoslavia was characterized by:

Accepted Answer

A)   private ownership of all factories.
B)   high living standards compared to the Soviet Union.
C)   less equal income distributions than market capitalist economies.
D)   low unemployment rates.E) B) and C)
F) A) and D)

Question 19

China's system of contracting all decisions to households is called:

Accepted Answer

A)   bao gan dao hu.
B)   mao zedong.
C)   zhao ziyang.
D)   li bao.E) B) and D)
F) All of the above

Question 20

Decisions in the former Soviet Union led to inefficiency, because:

Accepted Answer

A)   planners incorporated consumer preferences into their decisions.
B)   planners did not incorporate costs of all the factors of production in their decisions.
C)   the market was not completely abandoned.
D)   the market was overutilized.E) A) and C)
F) B) and D)

Exam 20: Socialist Economies in Transition

One method of privatization used by command socialist economies in the transition to free markets is to:

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The Russian term for restructuring is:

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Discuss the relative successes and failures of Russia and China in their efforts to make the transition to market capitalism. Include in your answer an explanation of the different approaches and their different outcomes to date.

Correct AnswerAnswered by ExamLex AIThe transition to market capitalism in R...View AnswerShow Answer

According to Karl Marx:

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China's system of contracting all decisions to households is called:

Correct AnswerverifiedShow Answer

Marx held that, ultimately, the price of a good or service:

Correct AnswerverifiedShow Answer

The price of a good, according to Marx, equaled the sum of _______ and the _______ resulting from production of the good.

Correct AnswerverifiedShow Answer

Socialism in Yugoslavia was characterized by:

Correct AnswerverifiedShow Answer

Decisions in the former Soviet Union led to inefficiency in part because consumer preferences were ignored.

Correct AnswerverifiedShow Answer

Following the collapse of the command socialist system in 1991, prices in Russia:

Correct AnswerverifiedShow Answer

From 1921-1924, Russia experienced a period called the New Economic Policy, which essentially was a return to the market as an allocative mechanism.

Correct AnswerverifiedShow Answer

The Great Leap Forward was an economic disaster for China.

Correct AnswerverifiedShow Answer

According to Marx, the value of a commodity is determined:

Correct AnswerverifiedShow Answer

According to Marx's interpretation of history, political forces outweigh economic ones as the main cause of change.

Correct AnswerverifiedShow Answer

China's transition to market capitalism has been characterized by:

Correct AnswerverifiedShow Answer

A micro-level problem of Russia's transition has been

Correct AnswerverifiedShow Answer

The political arm of command socialism was the Communist Party.

Correct AnswerverifiedShow Answer

Decisions in the former Soviet Union led to inefficiency, because:

Correct AnswerverifiedShow Answer

The Case in Point on socialist cartoons suggests that Soviet citizens recognized that:

Correct AnswerverifiedShow Answer

The Communist Manifesto predicted the:

Correct AnswerverifiedShow Answer

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The transition to market capitalism in R...
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The price of a good, according to Marx, equaled the sum of _ and the _ resulting from production of the good.

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