Chapter 14 Self-Quiz

. How many uses does a "thing" have, according to Aristotle?

None

Infinite

One

Two

Three

. The use of what artifact was the tool by which men first began "crafting" wealth?

Coin

Paper

Seashell

Talents

Dollar

. Philosophy is the trade of what, according to Smith?

Fancy words

Sharp tongues

Speculation

Action

Ideas

. Smith thought that the division of labor, which is essential to industrial capitalism, would cause workers to do what?

Become complacent and enjoyable

Become irritated and hostile

Become impaired morally and intellectually

Become sick and tired

Become more ambitious

. Heilbroner believes that in relation to capitalism, socialism was:

A serious economic threat

A respected rival

A necessary counterbalance

Never an economic threat

Completely irrelevant

. Heilbroner compares capitalism to an imperial or communist regime in what way?

There is little freedom for the poor.

It requires uncritical acceptance of a basic principle: economic growth.

It has a strict hierarchy and class system.

It is impossible for the system ever to be changed once in place.

The system is inherently unfair and unjust.

. Mill does NOT believe that the consumer is what?

Smart enough

Wise in the ways of business

Always right

Powerful enough

A competent judge

. The problem Keynes calls "the economic problem" is what?

The struggle for subsistence, making a living

Conspicuous consumption, acquiring wealth

Inflation, keeping an economy balanced

Unemployment and poverty

Economic pessimism, lack of consumer trust

. Schumacher points out that spiritual health and material well-being are what?

Mutually exclusive

Not enemies

Fading dreams

A paradox

Goods

. According to Amartya Sen, what can cause famines?

A drop in the food supply

Unemployment leading to poverty

A lack of social safety nets to help the poor

Either (b) or (c)

Any of (a), (b), or (c).

. What is the "Puritan ethic," according to Bell?

The idea that we should all be Protestants or have Protestant values

The values of prudence, hard work, and delayed gratification

A demand for pleasure and play

Our interest in being informed consumers

Our interest in being free citizens

. What is Frank's conclusion about the mistakes leading to the economic disasters?

They could not have been avoided anyway and are no one's fault.

The mistakes are widespread throughout the organizations and professions he mentions.

They are part of a conspiracy going right to the top.

They were flukes, one-time errors that will never be repeated.

They are part of a grand plan for world domination.

. What is Kuttner's opinion of a purely unregulated market?

In practice, it is unsustainable.

It is the only kind of market that will work.

It is morally wrong.

It is the only kind of market that is morally right.

Both (b) and (d)

. According to Sheelah Kolhatkar, in 2006 the 25th-highest earning hedge fund manager made __________.

$10 million.

$20 million.

$100 million.

$140 million.

$240 million.

. Smith thought that the division of labor was a hindrance to capitalism.

TRUE

FALSE

. Smith was optimistic about the future of capitalism, according to Heilbroner.

TRUE

FALSE

. Marx thought that a commodity's usefulness was essentially bound to the commodity.

TRUE

FALSE

. Heilbroner believes that for capitalism to work, everyone must uncritically accept the ideal of economic growth.

TRUE

FALSE

. Keynes refers to "technological unemployment" as a problem that occurs when one's technical skills become out of date and don't get updated with training.

TRUE

FALSE

. Sen believes that economics must take note of the fact that many around the world still live in poverty.

TRUE

FALSE

. From a Buddhist perspective, production that uses national resources to fill local needs is the most rational way to live economically.

TRUE

FALSE

. According to Bell, capitalism encourages a demand for pleasure and the consumption of consumer goods.

TRUE

FALSE

. When the Securities Exchange Commission calculates total illegal profits made in illicit trading activities, it includes illegally avoided losses in that total.

TRUE

FALSE

. In order to secure a conviction on insider trading charges, the prosecution must prove that the defendant knew the information was insider information and that the person from a company who provided it was getting a benefit for it.

TRUE

FALSE

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