(P 43 the Prime Minister of the Nation of Urbania

question 212

Multiple Choice

(p. 43 The prime minister of the nation of Urbania has called for Urbania's legislature to enact new legislation designed to shift his country away from socialism toward a more capitalistic system. The Prime Minister acknowledges that such a radical change will entail some hardships, and that some citizens will be unhappy with the changes. The most likely source of dissatisfaction with a move toward capitalism is:

• A)Decrease in wealth.
• B)People will have less economic freedom.
• C)Tax rates will have to increase.
• D)A trend toward unequal distribution of wealth.

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Definitions:

Mid 1950s

Refers to the period from 1954 to 1956, a time characterized by post-WWII recovery, significant cultural shifts, and the early stages of the Cold War.

Stabilization Policy

Government policies aimed at stabilizing the economy by reducing fluctuations in production, employment, and prices.

Expected Effects

The anticipated outcomes or results that are predicted to occur as a consequence of a particular action or set of conditions.

M

In the context of economics, M often refers to money supply, which includes various types of money in circulation like cash and bank deposits.