QUESTION 1

Which of the following statements about Sweden is TRUE?

A. Sweden has the lowest degree of wealth and income equality in Europe

B. The tax system has become more progressive over the past 40 years

C. Income inequality has increased since the 1980's

D. Welfare provisions have tended to become more generous over the past 40 years

QUESTION 2

From the mid-1940's to mid-1980's, Sweden relied on a centralized system of wage bargaining known as:

A. Command capitalism

B. Liberal corporatism

C. Laissez-faire

D. Planned socialism

QUESTION 3

What is the LO?

A. The trade association for owners and employers in the Swedish economy

B. A trade association for landowners and Swedish farmers

C. The general trade union for Swedish workers

D. Sweden's national labor exchange

QUESTION 4

Based on the information presented in Table 8.1, which country had the highest level of welfare generosity from 1971 to 1985?

A. Norway

B. Sweden

C. Denmark

D. France

QUESTION 5

For much of the past century, Sweden has maintained relatively high employment levels and low inflation. What feature of the Swedish economy is the key factor in this outcome?

A. Very generous unemployment benefits

B. Corporatism or centralized wage bargaining

C. Non-market price setting mechanisms for inputs and finished goods

D. Routine devaluation of the krona