CHAPTER 16
The United States and Global Capitalism, 1940-2006
MULTIPLE CHOICE QUESTIONS
110. After World War II ended in 1945, the US economy experienced
a. a period of stagnation with slow economic growth until the 1960s boom.
b. a boom or period of expansion until 1970
c. a return to the hard times of the Great Depression of the 1930s.
d. the emergence of global capitalism until the 1990s.
111.
a. wages that are paid in cash.
b. wages that are above the minimum wage.
c. wages that are adjusted for inflation.
d. wages that are paid in merchandise.
112. A stock market bubble occurs when
a.
b. prices of shares of stock increase steadily over a long period of time.
c. prices of stock decrease suddenly due to an external shock to the economy.
d. prices of stock rise above a level supported by underlying economic fundamentals.
113. A free trade zone is defined as
a. an area where consumers may obtain free goods.
b. an area where consumers may avoid duties as long as they are leaving the country with
the goods.
c. an area where goods are subject to lower import tariffs and quotas.
d. an area where consumers may buy goods that are normally illegal or restricted.
114. A government budget deficit occurs when
a. the government buys government bonds from private investors.
b. the government collects more in taxes and fees than it spends in a year.
c. the government spends more than it collects in taxes and fees in a year.
d. the government pays out more in interest on the external debt than on the internal debt.
115. During the 1970s and 1980s,
a. the US ec
b. the US began to compete effectively with, and in some cases outcompeted, European and
Japanese corporations.
c.
d. went through a long period of relative stagnation.
116.
a. capitalism that exists in more than one country.
b. most countries are predominantly capitalist.
c. a few capitalist countries dominate the world economy.
d. capitalism that is based primarily on international trade and investment.
117.
a. the nation has a whole owes more money to foreign countries than foreign countries owe
to the United States.
b. the US government owes more money to foreign governments than foreign governments
owe to the United States government.
c. individual households in the US owe more money to households in foreign countries than
households in foreign countries owe to US households.
d. US businesses owe more money to foreign businesses than foreign businesses owe to US
businesses.
118. What is UNICEF?
a. the United Nations International Commodities Exchange Foundation.
b. the United Nations Import Control and Funding Enterprise
c. the United Nations International Chil d
d. the United Nations International Center for Entrepreneurship and Freedom.
119. The purpose of the World Bank is
a. to provide emergency relief to countries during natural and other disasters.
b. to serve as a lender of last resort to countries to stop recessions and monetary panics.
c. to provide foreign currency to tourists traveling overseas.
d. to provide financial and technical assistance to poor or developing countries.
120. The International Monetary Fund provides loans subject to conditions known as structural
adjustment policies (SAPs). What are typical examples of SAPs?
a. increased privatization and reduced government spending.
b. increased regulation of foreign investment and exchange controls.
c. increased regulation of financial capital flows and reduced government spending.
d. increased government spending and reduced privatization.
APPENDIX 16.1
How War has Changed
MULTIPLE CHOICE QUESTIONS
121. In 1898, the United States fought a rival imperial country and took over the colonies of
a. Puerto Rico, Cuba, and the Philippines.
b. Haiti, Puerto Rico, and Hawaii.
c. Bermuda, the Dominican Republic, and Puerto Rico.
d. Puerto Rico, the Philippines, and Guam.
122. The text describes World War II as a war between the fascist, capitalist powers and the
liberal capitalist powers. Who were the fascist, capitalist powers?
a. Germany, Italy and Russia.
b. Germany, France and Russia.
c. Germany, Italy and Japan.
d. German, Italy and Poland.
APPENDIX 16.2
Socialist Critique of Global Capitalism
MULTIPLE CHOICE QUESTIONS
123. Modern Marxists were critical of Soviet Marxism and claimed that
a. the Soviet Union was socialist but not democratic.
b. the Soviet Union was democratic but not socialist.
c. the Soviet Union was neither socialist nor democratic.
d. the Soviet Union was both socialist and democratic.
124. At the end of World War II, socialism or socialist parties
a. existed only in the defeated countries of the Soviet Union.
b. were common in Western Europe, Asia, Africa and Latin America.
c. were outlawed in the capitalist democracies.
d. had disappeared in the US during the 1930s.