Karl Polanyi argued in his classic study The Great Transformation that
a. the market forces unleashed by the Industrial Revolution and globalization in the nineteenth century produced economic gains that encouraged greater stability through the creation of a middle class.
b. the market forces unleashed by the Industrial Revolution and globalization in the nineteenth century diminished the economic gains of the upper classes while redistributing them to the lower economic tiers of society.
c. the market forces unleashed by the Industrial Revolution and globalization in the nineteenth century produced great economic gains as well as social disruptions and political reactions.
d. the Industrial Revolution and globalization in the nineteenth century caused social disruptions not because of increased market forces but because of a perceived need by governments to enforce stability.
e. the great social disruptions and political reactions caused by the Industrial Revolution and globalization proves that there is an automatic relationship between inequality and political reaction.
Question 2
Which of the following is characteristic of centrally planned economies?
A) Government officials set prices.
B) Religious authorities decide production quotas.
C) They were dominant in Africa during the Cold War.
D) Governments cannot guarantee the basic needs of citizens.
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