Test 2

Test  2 – Unit 2

Name ______________________________                                        / 20

PART A     Multiple Choice (K/U)     8 MARKS
Clearly select and circle the BEST answer for each of the following multiple-choice questions.

1.  Hayek focused his theory on
(a) animal spirits.
(b) the boom side of the cycle.
(c) the bust side of the cycle.
(d) steering markets.

2.  Under democratic socialism the means of production
(a) is privately held.
(b) is centrally planned.
(c) is partially driven by private property rights.
(d) is publicly held.

3.  The following thinker described capitalism as universal opulence, meaning the potential to have more
(a) Hayek.
(b) Friedman.
(c) Ricardo.
(d) Smith.

PART B     Short Answer Questions (APP)     7 MARKS
Answer the following questions in the space provided.

1.  Describe 3 ways socialism is different than democratic socialism.  (3 marks)

PART C – Written Response (T)     5 MARKS

1.  Identify and explain the economic significance of the concept of commodity fetishism. (5 developed points = 5 marks)