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___ 12. The capitalist vision sees private property as desirable because:<br />

a. private property leads to the efficient use of resources<br />

b. private property allows the rich to dominate politically and economically<br />

c. Both of the above<br />

d. Neither of the above<br />

___ 13. The capitalist vision sees market prices as:<br />

a. often manipulated by powerful businesses<br />

b. contributing to economic efficiency<br />

c. providing information, incentives, and rationing<br />

d. Both b. and c. above<br />

___ 14. The capitalist vision sees government as:<br />

a. unnecessary in a market economy<br />

b. ideal for coordinating the competing desires of the millions of individual decision<br />

makers<br />

c. Both of the above<br />

d. Neither of the above<br />

___ 15. The socialist vision sees government ownership of resources:<br />

a. as beneficial to the general public<br />

b. as harmful to economic efficiency<br />

c. as harmful to individual freedom<br />

d. All of the above<br />

___ 16. The socialist vision sees market prices as:<br />

a. providing information, incentives, and rationing<br />

b. often manipulated by powerful businesses<br />

c. Both of the above<br />

d. Neither of the above<br />

___ 17. The capitalist vision:<br />

a. favors private ownership of resources<br />

b. favors market determination of prices<br />

c. favors limited government<br />

d. All of the above<br />

___ 18. The socialist vision:<br />

a. favors government ownership of resources<br />

b. favors price controls to ensure fair prices<br />

c. favors a large and strong government<br />

d. All of the above<br />

___ 19. In a market economy, the question of “what to produce” is determined by:<br />

a. the President’s Council of Economic Advisors<br />

b. the Federal Bureau of Efficient Production<br />

c. consumer demand<br />

d. majority vote<br />

___ 20. In a market economy, the question of “how to produce” is determined by:<br />

a. consumer demand<br />

b. the least cost method of production<br />

c. the distribution of income<br />

d. All of the above<br />

FOR REVIEW ONLY - NOT FOR DISTRIBUTION<br />

2 - 13 Trade and Economic Systems

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