When Ownership and Control of Most Elements in a Society

question 19

Multiple Choice

When ownership and control of most elements in a society are subject to state restrictions where no individual ownership of large amounts of property or wealth is permitted, it is a key principle of which system?

• A) communism
• B) liberalism
• C) democracy
• D) socialism
• E) anarchism

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Definitions:

Self-Correcting Mechanism

In economics, a self-correcting mechanism refers to the natural adjustment of markets in response to imbalances, restoring them to equilibrium without outside intervention.

De Facto Dollar Standard

An international financial system in which the U.S. dollar is used as the primary reserve currency by other countries, even though it may not be officially designated.

Monetary Policy

Control of the rate of monetary growth by the Board of Governors of the Federal Reserve.

Fixed Exchange Rates

are government-set exchange rates where a currency is pegged at a certain value against another currency, basket of currencies, or another measure of value.