Adam Smith's idea behind free-market competition is that it will produce the highest quality goods at the best prices.

In socialist systems, the government takes a laissez-faire approach to controlling the economy.

In socialist systems, people are not allowed to own their homes.

The United States is becoming a more pure capitalist country.

The largest foreign investors in the United States are the Japanese.

Socialists believe that everyone should get what they work for.

Although socialism and capitalism are very different, they have been converging toward some middle ground.

The concept of unemployment does not exist in traditional societies.

One reason companies form conglomerates is to gain access to the technology, skills, and experiences of the acquired company.

Caterpillar Tractor Corporation is headquartered in the United States but has plants in Brazil, Australia, and Scotland. As a result, Caterpillar is an interlocking directorate.

Unemployment is defined as people without jobs.

No society can have zero unemployment because, at any given time, some members of society are sick or in transition from one job to another.

Job-loss anxiety has negative consequences for society because it reduces the amount of money that people are willing to spend and it contributes to voter dissatisfaction.

The salaries of chief executive officers has increased as the number of employees they fire has also increased.

Conflict theorists propose that people in the United States do not a have problem with the inequalities created by capitalism because they have an ideology that supports and justifies winners and losers.