Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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Free markets and global trade have created
a. | more poverty in the past 25 years | c. | more wealth and prosperity in the
past 250 years than was created in the past 2000 years | b. | less wealth and prosperity | d. | more death and poverty in the past 25 years
than was created in the past 2000 years |
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2.
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We are living longer and more prosperous than the majority of people who have
ever lived
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3.
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Who said that free market and free trade would connect the continents and open
the world to wealth and prosperity
a. | Karl Marx | c. | Frederick Engles | b. | Adam Smith | d. | Samuel Gompers |
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4.
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Bigger is better because it creates more trade. What is the result of more
trade?
a. | People lives get better | c. | People die younger from
over-consumption | b. | People lives become unimportant | d. | More trade has little effect on
humans |
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5.
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Adam Smith was a social psychologist who wrote about morality and economics. His
ideas ___
a. | have been replaced by the ideas of Karl Marx | c. | led to
communism | b. | are the basis of modern world economics | d. | are no longer of any importance to modern
economics |
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6.
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What were the names of the two books written by Adam Smith that linked morality
and economics?
a. | Theory of Moral Sentiments and Wealth of Nations | c. | Theory of Moral Sentiments and
Wealth of Banks and Bankers | b. | Theory of Christian Morality and Wealth of
Nations | d. | Theory of being
Sentimental and Wealth of Nations |
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7.
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What two things did Smith believe would help all people to become
prosperous?
a. | free markets and government control | c. | free trade and free basics for the
poor | b. | free markets and the division of labor | d. | division of labor and limited
trade |
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8.
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Hong Kong is a city with no agriculture, crowded with refugees and no natural
resources. What did Sir John do to enable Hong Kong to become one of the most prosperous cities in
the world?
a. | government help for the economy | c. | peace, low taxes, and no government
interference in the economy | b. | government control of the
economy | d. | made Hong Kong
Socialist |
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9.
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What happened in China after they adopted Adam Smith’s Capitalist
ideas?
a. | China became even more poor | c. | The government took control of the
economy | b. | 600,000,000 people were lifted out of poverty | d. | 600,000,000 people starved because of the poor
economy |
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10.
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What do the Chinese believe about the theories of Adam Smith?
a. | Adam Smith ideas breed fascism and poverty | c. | Smith’s ideas are not
compatible with China’s ideas of morality. | b. | Adam Smith did not care about the
poor | d. | Smith’s ideas
are compatible with China’s ideas of morality. |
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11.
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The most serious defect in the China system is that China has
a. | closed market for goods and a free market for ideas | c. | open market for goods and a free
market for ideas | b. | open market for goods but does not have a free market for ideas | d. | no ideas or
markets |
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12.
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What is it called when products are created all over the world but are shipped
to one place and assembled into one product
a. | division of labor | c. | Socialism | b. | mercantilism | d. | individualism |
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13.
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What is the main way that goods are transported around the world in global
trade?
a. | with ships at sea | c. | with railroad trains | b. | with airplanes that fly city to
city | d. | by
automobile |
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14.
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Adam Smith believed that wealth was not just the money you have in the bank but
also
a. | your race | c. | your labor | b. | your family | d. | your
nationality |
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15.
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Adam Smith taught that morality and markets go together. To be a moral person
you had to care for others and if you combine morality and markets you will be successful.
a. | true | c. | Smith did not care about markets | b. | false | d. | Smith did not care about
morality |
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16.
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The owner of Whole Foods Market believed that Adam Smiths ideas were just as
valid today as they were in the 1700’s. Whole Foods markets gives their employees the ______ to
be creative in their jobs. This makes every employee feel important and satisfied.
a. | freedom | c. | regulations from the company | b. | rules from the
boss | d. | money |
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17.
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Adam Smith believed that systems run best when they are organized
a. | top down from the bosses | c. | around strict
rules | b. | bottom up from the employees | d. | understanding that the boss knows
best |
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18.
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Adam Smith did NOT believe in
a. | the work of individuals | c. | central
planning | b. | workers freedom | d. | money |
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19.
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Adam Smith and Whole Foods Markets believe that the best ideas come from
a. | the corporate offices | c. | the bosses | b. | the workers | d. | the government |
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20.
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What did Adam Smith mean by morality?
a. | fairness and an equal playing field | c. | forced income
distribution | b. | government control of the resources | d. | only cheating when it was
necessary |
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21.
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Why do the parks put up signs that say, “Do Not Feed the
Animals?”
a. | Animals are never satisfied and will keep coming back for more food | c. | Animals will loose
the ability to take care of themselves and may die | b. | The park rangers want to get rid of the
animals | d. | They do not want
the animals to like human beings |
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22.
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Adam Smith was suspicious of partnerships between government and business
a. | true | c. | there are no such partnerships | b. | false | d. | business cannot partner with
business |
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23.
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The richest areas in the United States are in the suburbs around
a. | Philadelphia | c. | Los Angeles | b. | New York | d. | Washington, D.C |
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24.
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Smith believed that an institution can become corrupted if it is too big
and
a. | allowed employees to make too many decisions | c. | made too many decisions from a
central power. | b. | too rich | d. | moral |
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25.
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If corn is a wasteful way of making gasoline, why do the oil companies use
it?
a. | it is cheap | c. | it smells good | b. | the government forces them | d. | they have no other sources for
gasoline |
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26.
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Adam Smith taught that competition
a. | gave power to the corporations | c. | gave power to individual
people | b. | gave power to the government | d. | kept companies from being
profitable |
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27.
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EBay is an example of the power of
a. | government social welfare | c. | controlled
markets | b. | business slavery | d. | free markets |
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28.
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The founders of the United States, such as Thomas Jefferson, admired and
believed in the ideas of Adam Smith
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29.
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The main author of the Constitution of the United States used many of the ideas
of Adam Smith. Who was this famous American founder?
a. | Thomas Jefferson | c. | Abraham Lincoln | b. | James Madison | d. | Franklin
Roosevelt |
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30.
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Karl Marx used the government to make life better for the people. Adam Smith
believed _____ was the best way to make life better and more fair.
a. | individual freedom | c. | common ownership | b. | more government power | d. | Socialism |
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