Question

REVIEWVIEW GRAMMARLY 1 Caption Emphasis Heading 1 1 Normal Strong Paragraph Styles d. grades and time to watch television 11. The old Soviet Union claimed to be running on Markist principles and was known as a very repressive society. This suggests the Soviet Union was a. a pure market economy b a mixed market economy c apure communist economy. d. stuck in the socialist/dictatorship of the proletariat stage of Marxist evolution. 12. Marx is sometimes considered a classical economist such as Adam Smith. Nevertheless he differed from Smith because a. Marx came before Smith, and Smith after reading Marx modified his work considerably b. Marx did not see the benefits of the invisible hand and said the logical evolution of capitalism would be the end of capitalism. C. work with Adam Smith. d. both b) and c) are correct Marx collaborated his The following 4 questions are based on Thomas Sowell's article on the post office (Go to

Answer 1

1.Ans: (d) Stuck in the socialist/dictatorship of the proletariat stage of Marxist ideology

The old Soviet Union followed Marxism-Leninism ideologies where the the economy was handled by devising centralised policies making the proletariat ( or the working class) as the dictators by entrusting all the political power on them.

2. Ans:- (c) Marx did not see the benefits of the invisible hand and said that logical evolution of capitalism would be the end of capitalism.

The 'invisible hand' theory postulated by Smith was based on the idea of producing greater goods and services by producers when there would not any state's intervention. People would be free to increase their production capacity in order to meet the demand of people in a free economy and charge people according to their capacity to pay. But the concept of invisible hand was rejected by Karl Marx and said that capitalism would destroy capitalism. According to him, capitalists would produce more and more but would exploit labourers by less payments. The prices of the produced good would be very high which helped only a fraction of the society to consume the goods. There would be lesser consumption of goods than the produced goods which would compel the capitalists to lower their production capacity. Reducing the production of goods by the capitalists also would result in the laying off workers creating imbalance in the economy causing great depression in the society leading to the labourers revolt against the capitalism.