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because these economies are not determined 5. You must be certain that all three choices
by beliefs and customs. are false before you can select “None of the
2. The correct answer is C. Consumer wants are above.”
rarely considered. Letters A, B, and D are
incorrect because these statements describe
a command economy. ANSWERS—MULTIPLE CHOICE
3. The correct answer is A. Producers receive QUESTIONS
income from consumer purchases. Letters 1. The correct answer is D. Students would
B, C, and D are incorrect because these probably know that Letters A and B are both
statements contradict Smith’s ideas. true. Then they can assume that D is the
correct answer.
2. The correct answer is D.
ANSWER—TEST YOUR KNOWLEDGE
3. The correct answer is D.
Traditional economies are inefficient because they 4. The correct answer is C. Both have some
do not allow individuals to make choices that would government control of the economy.
maximize productivity and use resources fully. Therefore, Letter D cannot be correct.
Economics: Concepts and Choices Daily Test Practice Transparencies User’s Guide 31