(I)  Governments That Respect Property Rights and Freedom of Exchange While

question 47

Multiple Choice

(I)   Governments that respect property rights and freedom of exchange while following monetary (and fiscal) policies consistent with relative price stability, establish the foundation for economic growth.
(II)   Governments have often diminished the economic prospects of a nation by levying high taxes, instituting price controls, and following inflationary monetary policies.

• A) I is true; II is false.
• B) I is false; II is true.
• C) Both I and II are true.
• D) Both I and II are false.

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Definitions:

Socialist System of Economy

An economic system where the means of production are owned and controlled by the state or public, aiming for equal distribution of wealth and resources.