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USE THE EXCERPT TO ANSWER QUESTIONS 1 and 2.

The true legislative role of parliament today is not to create legislation, but to scrutinize and ratify legislation
introduced by the Government of the day. Although an occasional exception to this pattern of behavior may
exist, the general rule is clear, the legislature today does not actively initiate legislation. The legislature has a
wide range of other functions. Among these are criticism of legislation, communication and representation of
constituency concerns, and generally articulating the concerns of the public of the day.

1. According to this excerpt, the main function of elected members within the parliamentary system today is to
A. monitor the activities of the executive branch
B. attend to the needs of individual constituents
C. gauge popular opinion on major issues of the day
D. introduce legislation based on constituent demand
2. Which of the following examples represents 'an occasional exception' to the general rule referred to in this excerpt?
A. Defeating a government bill
B. Monitoring riding business and concerns
C. Voting to support legislation approved by cabinet
D. Introducing a private member's bill concerning a key public issue

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USE THE FOLLOWING TRADITIONAL POLITICAL SPECTRUM TO ANSWER QUESTION 3.

3. Which political leader has been correctly placed on the above spectrum
A. Brian Mulroney
B. Margaret Thatcher
C. Nikita Khrushchev
D. Mikhail Gorbachev

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4. Some historians have argued that Roosevelts economic programs were less efficient and comprehensive than Hitlers
because, ultimately, Roosevelt had to respect the
A.
B.
C.
D.

advice of the political advisors in his cabinet


importance of world trade in an interdependent world
danger of high inflation accompanying government spending
constitutional limitations imposed upon the executive branch

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USE THE FOLLOWING EXCERPT TO ANSWER QUESTION 5.
Democratic freedom has failed in some countries because their people slept. It is commonplace for people who were
fighting under the banner of tyranny to excuse themselves on two grounds; they didnt realize what was happening to
their government, and there was nothing they could do but obey orders. Tyranny degrades both those who exercise it
and those who allow it.

5. The idea expressed in this excerpt could easily be applied to citizens who allowed the
A.
B.
C.
D.

Weimar Republic become a fascist state


Czarist empire to become a communist dictatorship
Former Yugoslavia to become a collection of quarrelling nationalities
Former Soviet Union to become a region of economic disintegration

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6. Today in Europe and North America, many neo-Nazi groups are regarded by their opponents as politically
A.
B.
C.
D.

liberal
reactionary
progressive
conservative

7. One of the ways fascist theory differs from communist theory is that in fascist theory
A.
B.
C.
D.

class differences are accepted


economic planning is centralized
agricultural production is collectivized
state government is distinct from the party structure

8. Despite the frequency of these elections, a supporter of parliamentary democracy would contend that the
A.
B.
C.
D.

accountability of responsible government was preserved


percentage of eligible voters who cast their votes increased
effectiveness of a proportional representation system was upheld
prime ministers elected succeeded in winning the support of the majority

9. Critics of proportional representation would argue that this type of representative democracy often leads to
A.
B.
C.
D.
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unstable minority or coalition governments


undue influence by mainstream political parties
domination of parliament by powerful lobby groups
less cooperation in parliament among members of the same political party
2

USE THE FOLLOWING ELECTION RESULTS TO ANSWER QUESTIONS 10 and 11.

10. The occurrence of four federal elections in the span of just six years, as shown by the sources, was the result of the
A.
B.
C.
D.

presence of voter apathy


inflexibility of cabinet solidarity
election of minority governments
ineffectiveness of government backbenchers

11. Which of the following conclusions can be supported by the sources?


A.
B.
C.
D.

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The size of the House of Commons was increased for the elections held in the 1960s
Voter turnouts in the 1960s were considerably higher that the voter turnouts in the 1950s
The platforms of the major political parties were far more conservative in the 1950s than in the 1960s
The election in 1958 was decisive, but the elections held in the 1960s failed to result in majority government

USE THE LIST OF PRINCIPLES TO ANSWER QUESTIONS 12 and 13.


Principles of Democratic Theory
A. Accountability
B. Constitutionalism
C. Individualism
D. Majority Rule

The belief that the cabinet is accountable to the legislature for its decisions and actions
Limits are placed on the authority of government officials by the fundamental features
a society sets out in its constitution
A main purpose of government is to foster the well-being of individuals and encourage
the fulfillment of their potential
Decisions are based on majority rule, but minority rights are recognized and
guaranteed, often in written human rights documents

Choose the principle of democratic theory defined above that is most specifically related to the statements
about Canadian democracy given in questions

12. Responsible government has a long and well-grounded tradition within the Canadian parliamentary system.

13. The rule of law is firmly embedded in the Canadian political system as a basis for protection against abuses of power
by government members

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USE THE EXCERPT TO ANSWER QUESTION 14.
All the courts can do, really, is act like referees. They do not make laws. When they declare that a law
violates the charter, they are saying that two laws created by politicians are in conflict.
If a law is so open to interpretation, the solution is to write a clearer law. And if a law isnt working well,
write another

14. According to this columnist, which of the following features would be most necessary to preserve democracy?
A.
B.
C.
D.

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Minority rights
The secret Ballot
Political competition
An independent judiciary

USE THE FOLLOWING CHART TO ANSWER QUESTION 15.

The Year Various Countries Adopted Universal Suffrage


Year
By 1840
By 1871
By 1874
By 1884
By 1890
By 1893
By 1896
By 1898
By 1912

Country
Australia, Canada, New Zealand, United States
France, German Empire
Switzerland
Great Britain
Spain
Belgium
Netherlands
Norway
Italy

15. The title of the chart is inaccurate and misleading because it suggest that
A.
B.
C.
D.

universal suffrage means giving the right to vote to all adult men but not to women
universal suffrage refers to the right to vote but not the right to periodic elections
18 year olds could vote in elections
voting was done by secret ballot

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16. Abuse of government authority is limited by the fact that all citizens enjoy a number of basic civil rights or
individual liberties.
Proof that Adolf Hitler did not support this assertion is best revealed by his
A.
B.
C.
D.

enforcement of the Nuremberg Laws


use of massive propaganda campaigns and rallies
recruitment of unemployed into military service
disregard for the provisions of the Treaty of Versailles

17. The dictatorial technique of directing popular discontent to the advantage of the ruling elite is best illustrated by
A.
B.
C.
D.

Stalins purges of political opponents


Hitlers persecution of non-Aryan races
Mussolinis March on Rome to gain widespread support
Lenins support of mutinous troops during the Bolshevik Revolution

18. Which of the following explanations for Hitlers rise to power in Weimar Germany is historically incorrect?
A.
B.
C.
D.
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Hitler cleverly used the dissatisfaction of war veterans as a subject from many of his speeches
Hitler accepted President Hindenburgs request to assume the position of chancellor
Hitler successfully appealed to various communist interests for support
Hitler skillfully manipulated existing democratic structures for his own benefit
5

USE THE FOLLOWING DIAGRAM TO ANSWER QUESTIONS 19 and 20.

19. A totalitarian system is best illustrated by


A.
B.
C.
D.

System I
System II
System III
System IV

20. The system of checks and balances outlined in the American Constitution is represented by
A.
B.
C.
D.

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System I
System II
System III
System IV

USE THE FOLLOWING LIST TO ANSWER QUESTION 21.

Statements Concerning the German System of Government


I.
II.

Germany is governed by a national government and 16 state governments


The Chancellor and cabinet are elected members of the Bundestag, the lower house of Germanys national
legislative branch
Three to five elected representatives from each state assembly are appointed by the state government to sit in the
Bundesrat, the upper house of the nations legislative branch
One-half of the members of the Bundestag are elected under a system of proportional representation

III.

IV.

21. Which statement best explains why German elections frequently result in coalition governments?
Statement I
Statement II
Statement III
Statement IV

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22. Which of the following significant changes would occur in the Canadian system of government if it were reformed to
be more similar to that of the German system?
A.
B.
C.
D.

The Senate would include members from the provincial legislatures


The political stability of the national government would be increased
The powers of the prime minister and cabinet would be greatly increased
The prime minister and cabinet would be primarily responsible to the Senate

23. In arguing against a parliamentary system, supporters of the American congressional system would insist that the
advantage of the congressional system is that it
A.
B.
C.
D.

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allows for the greater separation of powers


gives the strongest mandate to the executive branch
allows for the greatest responsiveness of special interest groups
gives citizens the strongest guarantee for their political participation

USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 24- 27.


The characteristics listed below are associated with different positions on the political spectrum
Position I

Is willing to change the existing system through progressive reforms


Respects the concept of law and attempts to change it through legal means
Remains optimistic about peoples ability to solve their own problems
Maintains faith in human reason and basic equality

Position II

Supports policies that will return society to a previous time, condition, or value system
Proposes retrogressive change to the status quo
Advocates any means (violent or non-violent) of restoring society to a former state
Reflects extreme dissatisfaction with existing institutions

Position III

Favours immediate and fundamental progressive change to the existing system


Indicates varying degrees of dissatisfaction with the status quo
Argues that revolution (violent or non-violent) is the only way to effect change in society
Challenges the basic values and institutions underlying society

Position IV

Supports the status quo and advocates very little change to existing systems
Places great emphasis on the importance of maintaining traditional values and institutions
Has an essentially cautious view of peoples ability to reason and solve problems
Favours less control over individuals and opposes governmental remedies to societys inequities

24. The opposite ends of the political spectrum are represented by


A.
B.
C.
D.

positions I and II
positions II and III
positions I and IV
positions III and IV

25. On the political spectrum, Position III would be located


A.
B.
C.
D.

on the extreme left


somewhat left of center
somewhat right of center
on the extreme right

26. In 1994 in the United States, the Republican Party gained a majority in both houses of Congress, while President
Clinton, a Democrat, held the chief executive office
A political consequence of this development has been conflict between those holding beliefs of
A.
B.
C.
D.

positions I and II
positions I and IV
positions II and III
positions II and IV

27. Position II reflects the characteristics usually associated with individuals labeled as
A. liberal
B. radical
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C. reactionary
D. conservative
28. Only a few people possess the intelligence and ability to rule effectively.
A fascist would support this generalization by rationalizing that:
A. the state must be concerned with community and family values rather than the selfish goals of a few
individuals
B. peoples beliefs and opinions should be widely disseminated to encourage social cohesion and participation
C. the state must recognize and allow for the basic fact of human nature that only the strong survive
D. the privileges of the individual must prevail over the collective welfare of society

29. According to democratic theory, active interest groups and a free press ensure that
A.
B.
C.
D.

tyranny of the majority is prevented


minority rights do not become entrenched
bureaucratic decisions are given greater credibility
elections reflect the wishes of mainstream political parties

30. Extreme political right-wing reactionaries and left-wing radicals would agree with which of the following aspects of
societal change?
A.
B.
C.
D.

Change is needed to improve the lives of the economically disadvantaged


Political power and authority must eventually rest in the hands of all citizens
Violence may be necessary if there are forces that resist proposed changes
A new society must eliminate all traditional elements of the society it has replaced

31. In Canada, an action that would represent a movement away from the practice of traditional representative democracy
and movement toward the practice of direct democracy would be
A.
B.
C.
D.

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a prime minister calling for a national referendum to determine government policy on the abortion issue
the House of Commons amending a private members bill on abortion
a prime minister allowing members of Parliament to vote by conscience on a controversial abortion bill
an anti-abortion group disrupting question period in the House of Commons

USE THE CHART TO ANSWER QUESTION 32.

32. Which of the following statements completes the chart?


A.
B.
C.

New laws will reflect the beliefs of an elite group


Voter choice will be reduced as a result of fewer political parties
Elections will occur more frequently if parties fail to win a majority vote
Citizens will become more apathetic about politics, leading to low voter turnout.

D.

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USE THE FOLLOWING LIST TO ANSWER QUESTION 33.
Selected Socioeconomic Conditions

Political instability and extremism


Homelessness and extreme poverty
Rampant inflation and unemployment
Currency devaluation and market collapse
Organized crime and political corruption

33. The Socioeconomic Conditions listed above are characteristic of


A.
B.
C.
D.

Great Britain during the 1920s


Canada in the 1930s
West Germany in the 1980s
Russia during the 1990s

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34. The popular appeal of fascism in both Italy and Germany during the interwar years can be attributed largely to the
emphasis fascist ideology placed on
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A.
B.
C.
D.

racial discrimination
ultranationalistic furvour
isolationist foreign policies
class struggle between rich and poor
Use the charts to answer question 35.

35. Which technique of dictatorship is illustrated in the charts above?


A.
B.
C.
D.

Purging dissidents
Terrorizing opponents
Scapegoating enemies
Indoctrinating supporters

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36. An important reason for the emergence of right-wing extremism in many parts of Europe during the 1920s and 1930s
was the
A.
B.
C.
D.

popularity of emerging pacifist ideologies


decline in the attraction of nationalist fervor
fear of revolutionary communist movements
popular support for legitimate democratic institutions

37. During the last days of the Weimar Republic; the factor that most strongly contributed to the abandonment of
democracy and any pretense of upholding parliamentary traditions was the
A.
B.
C.
D.
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passage of the Enabling Act


election of Nazi deputies to the Reichstag
election of von Hindenburg to the presidency
plotting of the Night of the Long Knives
11

38. Ideologically and historically, Marxists have envisioned a society that is based on the principles of
A.
B.
C.
D.

industrial growth and elitism


equality and humanitarianism
collectivism and nationalism
centralization and authoritarianism
Use the following statements to answer question 39.

39. Which of the following observations regarding the above statements is accurate?
A.
B.
C.
D.

Both statements are true.


Both statements are false
Statement I is true and Statement II is false
Statement I is false and Statement II is true.

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40. In Canada, the main reason that the interests of local constituencies are not always addressed in the House of
Commons is that
A.
B.
C.
D.

political agendas of opposition parties gain too much media attention


provincial politics have begun to dominate the national scene
representation by population does not adequately ensure voter equality
elected representatives often adhere to party discipline when deciding issues

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USE THE FOLLOWING EXCERPT TO ANSWER QUESTION 41
In every move they made, the Nazis showed the advantage enjoyed by a political movement which refused to be
bound by any rules, which did everything it could to exploit surprise and shock, and [which] instead of repudiating
violence in the streets employed it to break down opposition
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41. The techniques of dictatorship illustrated in the excerpt is that of


A.
B.
C.
D.

using or threatening force and coercion


directing popular discontent at scapegoats
controlling participation at political rallies
using party propaganda and indoctrination

42. The development of representative democracy as an alternative to direct democracy challenges the underlying
principle that
A.
B.
C.
D.

all minorities have political influence equal to that of the majority


universal suffrage is necessary in order to achieve responsible government
the primary purpose of government is to ensure the security of its citizens
all citizens have the same opportunity to participate in political decision making

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Use the list below to answer questions 43-45.

43. In practice, which characteristics have been common to both fascist and communist systems?
A.
B.
C.
D.

Characteristics 1, 6, and 8
Characteristics 2, 5, and 8
Characteristics 1, 2, and 7
Characteristics 4, 6, and 7

44. Which characteristics are unique to communist systems of government?

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A.
B.
C.
D.

Characteristics 1, 4 and 7
Characteristics 3, 6, and 7
Characteristics 2, 5 and 7
Characteristics 1, 4, and 6

45. Reforms undertaken during the 1990s by the government of the Peoples Republic of China include
A.
B.
C.
D.

Adopting characteristic 4 and devaluing the importance of characteristics 5 and 6


Adopting characteristic 1 and devaluing the importance of characteristics 3 and 5
Adopting characteristic 7 and devaluing the importance of characteristics 5 and 8
Adopting characteristic 6 and devaluing the importance of characteristics 1 and

46. To stay in power, it is the nature of authoritarian regimes to use the stick as well as to offer the carrot.
The stick in this statement most likely represents the dictatorial technique of
A.
B.
C.
D.

indoctrinating through media propaganda


using a secret police force to eliminate dissent
controlling and determining an election outcome
establishing paramilitary organization to employ the jobless

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USE THE CARTOON TO ANSWER QUESTION 47.

47. The point of view revealed by this American cartoon is critical of the
A.
B.
C.
D.

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lack of consistent and principled leadership


undue influence exercised by elite lobby groups
unwillingness of government to respond to citizen concerns
electorates inability to understand and participate in decision making

14

USE THE FOLLOWING COMMENTARY TO ANSWER QUESTIONS 48 & 49.


The political left was built on a view of human life that was partly true, but not wholly true. People, the left argued, are not inherently
unequal or inherently bad, but society can make them so.
By changing society, the left believed, you could remove the chains that oppress and distort peoples lives. By redistributing income,
you could create fairness. By improving the conditions of life, you could improve people. Crime, violence, greed, human misery
these were byproducts of an exploitive society. Humanize society and you humanize life

48. Which of the following generalizations reflects characteristics attributed to the political left described in the
commentary
A.
B.
C.
D.

The left encourages individuals to take greater responsibility for their actions
The left believes that peoples lives have been overwhelmed by the intrusiveness of government
The left advocates government involvement in peoples lives to minimize social and economic disparity
The left supports cautious changes to existing political traditions and institutions of government

49. To right-wing thinkers, the methods that left-wing politicians would use to achieve the goal of improving the
conditions of life are unacceptable because they involve
A.
B.
C.
D.

economically penalizing those who have demonstrated self-reliance and initiative


the creation of an economic system dominated by a small group of corporations
the elimination of state-financed programs that offer economic security for all
restricting the freedom of workers to organize and bargain collectively

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50. In a democracy, the primary purpose of periodic elections is to ensure that
A.
B.
C.
D.

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new candidates are chosen as a means of preventing majority tyranny


the legitimacy and accountability of the government is maintained
one leader does not monopolize control of a political party.
minority groups are guaranteed political representation

15

51. During a crisis situation, should parliamentary governments have the right to invoke emergency legislation that
restricts personal freedoms?
Which of the following arguments supports an affirmative position on this issue?
A. Strong direction is required to prevent egalitarianism
B. Preserving minority rights can sometimes prevent majority rule
C. Undemocratic means are sometimes needed to preserve democratic ends
D. Force is the most effective way to restrict dissenting views in a democracy.

52. Because important decisions are made in both the legislative and executive branches of the American government,
there is significant opportunity for
A.
B.
C.
D.

special interest groups to exert influence


party leaders to win primary nominations
citizens to participate in election campaigns
mainstream political parties to elect candidates

53. To consolidate their control over government, totalitarian leaders typically


A.
B.
C.
D.

restrict party membership to the wealthiest classes


demand public ownership of most industry and production
relegate opposition parties to the role of debating minor issues
prevent any judicial or legislative review of executive decisions

54 Which of the following justifications for dictatorship would be least objectionable to most supporters of democracy?
A.
B.
C.
D.

People should be willing to sacrifice personal freedoms to the will of the leader
The state should be concerned with conformity of thought and the ideological control of education
The collective welfare of society should prevail over the privilege of any individual whenever the two conflict
People should accept government control as a means of stimulating more thought and creativity than does
individual freedom

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USE THE FOLLOWING SOURCES TO ANSWER QUESTIONS 55-57.

55. The information in Source III supports the conclusion that


A.
B.
C.
D.
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Europe was politically stable prior to 1928


National Socialist support peaked prior to 1928
German politics became increasingly polarized after 1928
German left-wing parties suffered a loss of support after 1928
17

56. Taken together, the sources would be most effective in researching which of the following questions?
A.
B.
C.
D.

How was Germany affected by the economic boom of the 1920s?


Was National Socialism a broadly-based, popular political movement?
Why was Germany able to recover so quickly from the First World War?
Why did the Communist Party fail to achieve power in the Weimar Republic?

57. Which of the following statements regarding the sources is accurate?


A. The data found in Source I represent a major cause of the trend shown in Source III.
B. The information in Source II helps to explain the causes of the unemployment trend between 1929 and 1931
shown in Source I
C. The details in Source III contradict the expected voting patterns of white-collar Nazi Party members as
shown in Source II
D. The election results shown in Source III and the number of unemployed shown in Source I did not effect the
distribution of party memberships shown in Source II
58. Which of the following actions would illustrate reactionary political forces at work in Canada?
A.
B.
C.
D.

Parliament introduces reforms allowing for an elected Senate


A federal government apologizes for earlier mistreatment of an ethnic minority
A political party mandates that one-half of its candidates for election must be women
The ruling party creates legislation allowing for the reinstatement of capital punishment

59. In non-democratic countries, elections are held primarily as a means of


A.
B.
C.
D.

reinforcing the perceived legitimacy of the regime in power


providing an opportunity for citizens to effect political change
meeting the legal requirements imposed by legislated constitutions
providing the elite with an insight into popular attitudes and beliefs

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USE THE CHART TO ANSWER QUESTION 60.

60. Supporters of the electoral system of Nation X would argue that this system
A.
B.
C.
D.

prevents tyranny of the majority


discourages the formation of majority governments
promotes political stability and legislative efficiency
encourages the formation of broadly based coalition governments

_____________________________________________________________________________
USE THE DIAGRAM TO ANSWER QUESTION 61.
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61. Which box in the diagram identifies a characteristic that is inconsistent with the diagrams central theme?
A.
B.
C.
D.

Box I
Box II
Box III
Box IV
USE THE FOLLOWING EXCERPT TO ANSWER QUESTION 62.
New Zealand seems to have found it. So have Germany and Sweden. It is, quite simply, a mixed system:
half the members are selected from constituencies, the same way they are now; half are drawn from party
lists, according to their share of the popular vote.

62. The excerpt interprets the mixed system as combing aspects of both
A.
C.
D.

federalism and a system of revolving minority governments


B. proportional representation and single member plurality
proportional representation and a coalition government
single member plurality and a congressional system

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63. From the perspective of a supporter of authoritarianism, a flaw inherent in democratic systems of government is that
such governments
A.
B.
C.
D.

deny voting rights to a significant proportion of the population


deny societys natural leaders the right to rule without question
fail to ensure an orderly transition at times of a leadership change
fail to tolerate the opinion of persons who hold extreme points of view

64. Ideologically, fascist dictatorships are based on the belief that governments should
A.
B.
C.
D.

create societies that protect the unique abilities of individual citizens


relinquish responsibility for shaping the moral character of citizens
rely on the skills of their best citizens for guidance and leadership
bear the responsibility for every citizens economic well-being

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65. Hitlers rise to power was similar to Mussolinis in that both dictators
A.
B.
C.
D.

relied heavily on public opposition to war and to national expansion


relied heavily on public fear of centralized political decision making
exploited public disillusionment with liberal-democratic governments
exploited public controversy regarding the roles of church and state

USE THE FOLLOWING QUOTATION TO ANSWER QUESTION 66.


Public services have, to use the economists word, a strong re-distributional effect. And this effect is strongly in favour of
those with lower incomes
- John Kenneth Galbraith
66. Supporters of the ideas reflected in the quotation would most likely accept which of the following actions taken by a
government of a mixed economy?
A.
B.
C.
D.

Tax concessions to private corporations


Privatization of publicly owned businesses
Monetary incentives to profitable businesses
Transfer payments to economically depressed areas

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USE THE FOLLOWING COMMENT TO ANSWER QUESTION 67.
The operation of the market system relies on the motivation that results from increased corporate profits. Profits represent a
return on capital and a reward for initiative. Profits not only generate dividends
but they also provide funds for much needed research and development. These funds contribute to the capital needed for
future investments.

67. Given the point of view expressed above, this writer would support legislation designed to
A.
B.
C.
D.

limit foreign investment and takeovers


eliminate capital gain tax loopholes
nationalize unprofitable businesses
deregulate key industrial sectors

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68. Which of the following ideologies is most closely associated with the idea that economic systems are based on
exploitation and involve a constant class struggle?
A.
B.
C.
D.

Fascism
Marxism
Anarchism
Capitalism

69. The social and economic conditions that developed in Russia immediately following the collapse of communism most
closely resembled those found in
A.
B.
C.
D.

Fascist Italy during the late 1920s


Weimar Germany during the early 1920s
Nazi Germany during the late 1930s
Imperial Japan during the mid-1940s
USE THE FOLLOWING EXCERPT TO ANSWER QUESTIONS 70 AND 71.
There can only be one sane enlightened decision. It is a thousand times better to have a free market plan
under fair and equitable laws democratically passed and enforced. First, we avoid the terrific burden
entailed in maintaining a vast bureaucracy; and, second, the free market operates with a maximum of
freedom and a minimum of force. The free market rewards efficiency and economy; it punishes laziness
and waste, and thus provides incentive, the very mainspring of human progress

70. A democratic socialist, in responding to the opinion expressed in this excerpt, would agree with the speakers
contention that
A. economic freedoms are valid goals, but would claim that the free market system makes little provision for the
disadvantaged
B. expanding bureaucracies are valid pursuits, but would claim that personal incentive is the only mainspring of
human progress
C. fair and equitable laws are valid goals, but would claim that some force is needed to motivate workers
D. efficiency and progress are valid pursuits, but would object to the high taxes demanded by a free market
71. Which of the following economic systems has traditionally been based on the ideas expressed by the speaker?
A. The British welfare state
B. The Canadian mixed economy
C. The Swedish democratic socialist state
D. The American capitalist-oriented economy

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72. Given the point of view expressed in the excerpt, the speaker would likely agree that

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A.
B.
C.
D.

government intervention in an economy is necessary under certain circumstances


free market economies must be regulated by key civil servants in a bureaucracy
individual initiative is essential for the successful functioning of an economy
public enterprise economies encourage the growth of investment capital

73. By the mid-1990s, many democratic governments led by political parties of the right were reducing budgetary deficits
by
A.
B.
C.
D.

increasing the general rate of taxation


nationalizing major business enterprises
decreasing government spending on services
supporting wage increases to end labour disputes

USE THE EXCERPT TO ANSWER QUESTION 74


Scandinavia may become the most left wing region of Europe, given results of recent parliamentary
elections in two countries and other political trends, according to The Economist. Shortly after the
Swedes returned the Social Democrats to power in September 1994, the Danes voted to retain the
coalition government, which will depend on leftwing parties. These votes reflect a deep seated
determination to maintain the welfare state even at the cost of tax rates that would be unsustainable in
other Western countries. But the resurgent welfare state is not out of danger in Sweden. Swedish voters
can expect at least another few years of austerity as the new Prime Minister must present a convincing
plan to reduce the huge budget deficit.

74. Given twentieth century political tradition in Scandinavia, is the information given in this excerpt surprising?
A.
B.
C.
D.

Yes, because most Scandinavian countries are very different from each other in their ideological beliefs
Yes, because most Scandinavian countries have traditionally followed the principles of free enterprise
No, because most Scandinavian countries have traditionally upheld the principles of the welfare state
No, because most Scandinavian countries have followed ideological paths similar to those of Eastern Europe
during the Cold War

_____________________________________________________________________________
75. A government that promotes individualism over collectivism would favour
A.
B.
C.
D.

a steeply progressive income tax structure


the bailout of failing private businesses
the nationalization of major industries
a deregulated business sector

76. For a Canadian who supports democratic capitalism, the most acceptable solution to the problem of growing
government debt would be to
A. support extensive interventionist government fiscal and monetary policies
273669168

22

B. reduce federal government transfers to provincial governments in the areas of social welfare and
health care
C. increase spending on job creation programs and increase progressive income taxes
D. adopt demand--side principles as guiding economic approaches
77. Which of the following statements is true of both Nazi Germany and the Soviet Union during the 1930s?
A.
B.
C.
D.

A state decree eliminated class differences


The means of production were state-owned
Citizenship was granted on the basis of race
State planners set quotas for the production of many goods

78. Concerns about growing income disparity and about increasing materialism in many Western economies are
expressed by supporters of
A. laissez-faire economies
B. free enterprise economies
C. public enterprise economies
D. private enterprise economies
79. Contemporary neo-conservative thinkers dispute the modern liberal belief that
A.
B.
C.
D.

economic growth is desirable and enhances the quality of life


political authority should emerge through democratic processes
the civil rights and liberties of citizens should be guaranteed constitutionally
the state must play a greater role in ensuring economic security for all citizens

80. Critics of supply-side economics contend that the main reason that the 'trickle-down' effect fails to spur
business expansion is because
A.
B.
C.
D.

consumers are reluctant to commit themselves to credit expenditures


governments are willing to increase their current deficits or long-term debt
corporations often use increased profits to reward shareholders rather than to increase production
large labour unions often demand higher wages and more comprehensive benefits for their members

_____________________________________________________________________________
USE THE FOLLOWING DIAGRAM TO ANSWER QUESTION 81.

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23

81. This 1991 diagram effectively illustrates the


A.
B.
C.
D.

regulations of cartels by governments


international mobility of investment capital
high level of competition among automakers
similarity in car design across national borders

USE THE FOLLOWING EXCERPT TO ANSWER QUESTION 82.


free market capitalism is fundamentally dependent on the entrepreneur and his [or her] spirit of enterprise. That is to say on
people such as you, as democratic capitalist economy grows from the ground up, not the reverse. A pretty fair synopsis of why
the entrepreneur is so important is that: Capitalism, in its essence, is a system of continuous change brought about by the
innovative activities of entrepreneurs. Such characteristics of capitalism as interest, credit, profit and business cycles arise
because of innovation. The entrepreneur is the central figure that distinguishes capitalism because he [or she] is the engine of
innovative thought.

82. Which of the following government policies would be accepted by a person with this point of view?
A.
B.
C.
D.

Implementation of severe restrictions on foreign investment


Passage of laws to prevent the formation of monopolies
Centralized planning of economic production
Nationalization of key industries

_____________________________________________________________________________
USE THE FOLLOWING COMMENTS TO ANSWER QUESTIONS 83-86.

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24

I.
II.
III.
IV.

The most generous [Canadian] tax breaks are those which allow corporations to defer their taxes. In theory the taxes
saved this way are to be paid at a later date but they rarely are
Ottawa has always justified tax breaks [for corporations] as a means of stimulating investment . The federal auditor
general reported that in 1985 corporations avoided paying $35 billion in taxes
What is the difference [in Canada] between subsidies to corporations and welfare of unemployment payments? The
former, largely hidden from public scrutiny, is called providing investment incentives, and the latter is called socialism.
The Consumers' Association of Canada has noted a disturbing change in the direction toward taxing money spent rather
than money earned.

83. Which two comments directly suggest that the Canadian federal government was following a 'Reaganomics'
supply-side style of economic policy at the time these comments were made?
A.
B.
C.
D.

Comments I and II
Comments I and IV
Comments II and III
Comments III and IV

84. To support the trend noted in Comment IV, the Consumers' Association of Canada could point to
A.
B.
C.
D.

increases in corporate taxes


increases in personal incomes taxes
the introduction of a capital gains tax
the introduction of the goods and services tax

85. On the issue of reducing current federal and provincial government debt, the author of these comments would
argue that
A.
B.
C.
D.

tax reform has become secondary to increased social spending


corporate taxation as a source of revenue has been largely ignored
the cost of social spending is lowering corporate investment revenue
the burden of reducing the national debt is borne primarily by corporations

86. Which of the following government actions best reflects an emphasis on the promotion of self-reliance and
competitiveness in the Canadian economy?
A. Eliminating subsidies to small independent businesses
B. Raising the goods and services tax on consumer spending
C. Nationalizing natural resource production and distribution
D. Regulating fees charged by Crown corporations
87. Which of the following characteristics would be present in a model public enterprise system?
A.
B.
C.
D.

Investment capital for entrepreneurship


Private ownership of resources
Income inequality
Price stability

88. Adam Smith argued that collusion and agreement among producers of the same product to artificially raise selling
prices would be
A.
B.
C.
D.

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acceptable as long as such actions occurred in a market economy


acceptable as long as the government regulated the quality of the product
unacceptable because the government has the right to determine market prices
unacceptable because such actions interfered in the functioning of a free market

25

_____________________________________________________________________________
USE THE GRAPH TO ANSWER QUESTIONS 89 & 90.

89. The trend indicated in the graph suggests that Canadian trade has become more
A.
B.
C.
D.

protectionist in nature
subject to currency fluctuations
integrated with other economies
dependent on world commodity prices

90. The graph provided information that supports the conclusion that government tariff policy since the Depression era
has encouraged Canadian manufacturers to
A.
B.
C.
D.

rely more on domestic sales and less on the export market


become more competitive with producers in other nations
rely more heavily on foreign sources fro resource materials
become more dependent on capital goods production

USE THE FOLLOWING EDITORIAL EXCERPT TO ANSWER QUESTIONS 91-93.


If [governments are] looking for a road map [to economic recovery], they could do worse than to return to the old economics. The
Americans [have started] to. Many of [Clintons] key economists grew up with the old economics . It goes like this;
governments should spend when the economy is bad, and restrain spending when the economy is good. Many western countries got
into trouble because they kept on spending when the times were goodIt is not too late to return to what once worker.[Galbraith*
recently stated], The tendency of the modern market economy to periods of despondency and depression must be specifically
addressed. This requires positive government intervention.How should governments intervene? Lower interest rates may help,
but there is no magic in monetary policy In times of recession governments must move aggressively to employ people [and relieve]
economic distress. Then, when recovery is assured, there must be the discipline that brings restraint and allows the reduction of
government expenditure.
*John Kenneth Galbraith, Canadian-born economist

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26

91. In the
meant by the old

Various Political and Economic Beliefs


1.
2.
3.
4.
5.
6.
7.

A.
B.
C.

Economics should be planned and regulated by the state


The principles of the free market should be promoted
International economic agencies should regulate world trade
Government intervention in an economy should be kept to a minimum
Radical reform should be used to correct the abuses of capitalism
The right of individuals to own property should be protected
The rights of the collective should be preserved at all costs

D.

excerpt, what is
economics?
Classical liberal
theories
Laissez-faire
theories
Supply-side
theories
Keynesian

theories
92. The concept in this editorial that would most alarm supporters of the modern market economy is that of
A.
B.
C.
D.

positive government intervention


Lower interest rates
monetary policy
reduction of government expenditure

93. Since the 1980s, Western governments have had difficulties following Galbraiths advice to move aggressively
because of
A.
B.
C.
D.

shortages of available investment capital


the lack of initiative in a security-minded workforce
pressure from the electorate to raise taxes on corporations
the necessity of reducing accumulated budget deficits and debt loads

USE THE FOLLOWING LIST TO ANSWER QUESTIONS 94 and 95.

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27

94. The beliefs that are consistent with moderate right-wing ideologies are
A.
B.
C.
D.

beliefs 2, 4, and 6
beliefs 1, 3, and 5
beliefs 2, 6, and 7
beliefs 1, 4, and 5

95. The beliefs that are consistent with the ideas of Marxist-Leninists are
A.
B.
C.
D.

beliefs 2, 3, and 6
beliefs 1, 5, and 7
beliefs 2, 4, and 7
beliefs 4, 5, and 6

_____________________________________________________________________________
96. Lenins New Economic Policy and Gorbachevs perestroika were both characterized by
A.
B.
C.
D.

an increase in consumer goods production through greater central planning


a restructuring of government institutions to allow greater freedom of speech
a departure from dogmatic economic policy in order to increase individual initiative
an attempt to consolidate Communist party control in order to ensure political stability

97. Laissez-faire capitalists oppose the formation of unions primarily because they believe that unions
A.
B.
C.
D.

distort the labour market and increase the cost of production


encourage governments to spend lavishly on public works
fail to act in the long-term interests of their members
restrict consumer confidence and spending

USE THE FOLLOWING SOURCES TO ANSWER QUESTIONS 98- 101

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28

98. The authors of sources I and II agree that corporations


A.
B.
C.
D.
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have social responsibilities


contribute to community wealth
exist exclusively to make a profit
receive favourable government treatment
29

99. Friedmans point of view, as expressed in Source I, is based primarily on the assumption that
A.
B.
C.
D.

corporations will be law abiding and will follow the rules of fair competition
government intervention in any economy is often unplanned and haphazard
corporate decision making is often influenced by the needs of the community
governments will provide directly for the social-welfare needs of the community

100. The cartoon emphasizes the idea, cited in one of the two sources, that
A.
B.
C.
D.

there is one and only one social responsibility of business (Source I)


Governments identify growth and development with commercial corporations. (Source II
the corporation has the nature of the impersonal institution that [human beings] created (Source I)
it is important that the nature of this institution be clearly understood (Source II)

101. A social democrat would strongly disagree with


A.
B.
C.
D.

the Source II cartoonists depiction of the Mega-Corp


the Source II idea that communities and corporations cooperate
Friedmans belief that corporations should make profits
Friedmans contention that corporations have only one social responsibility

_____________________________________________________________________________
102. From the perspective of private enterprise economists, the most effective approach that western democratic
governments use to eliminate deficit budgeting is to
A.
B.
C.
D.

place a surtax on corporate profits


introduce programs of fiscal restraint
nationalize high technology industries
increase public subsidies for low income earners

_____________________________________________________________________________
USE THE FOLLOWING LIST TO ANSWER QUESTIONS 103 and 104
Proposed Measures for Economic Reform
Sell all public utilities to private interests
Create a flat tax on all income levels
Establish a means test to determine old-age pension eligibility
Apply user fees to all publicly funded medical services
Introduce lower consumption taxes on luxury goods and services

103. Which measure directly challenges the economic principle of the universality of social programs?

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30

A.
B.
C.
D.

Measure I
Measure II
Measure III
Measure V

104. Given the context established by the above list, which of the following measures could be appropriately added?
A. Nationalize the transportation industry
B. Contract public services to entrepreneurs
C. Guarantee the continuation of transfer payments
D. Provide the education system with greater public funding
105. During the 1980s and 1990s, individuals who criticized the implementation of trickle-down supply-side economic
policies contended that such practices
A.
B.
C.
D.

caused income gaps to decrease significantly


created weaker competition within the corporate sector
challenged traditional free-market solutions to problems
concentrated more wealth in the hands of already wealthy citizens

106. Supporters of public enterprise systems view competition as a negative force because they believe that competition

A.
B.
C.
D.

leads to inefficient use of goods and services


encourages a more equal distribution of wealth
thwarts the operation of supply and demand in an economy
distributes more wealth to the consumer than to the producer

107. Supporters of the type of command economy that existed in Nazi Germany believe that the
A.
B.
C.

majority of a nations resources should be state-owned and publicly controlled


majority of a nations citizens should be involved in entrepreneurial enterprises
private enterprise systems provides efficient production but requires overall objectives set by the state
D. private enterprise system can solve most economic problems if the government refrains from interfering in the
economy

108. Social democrats have traditionally opposed government policies that


A.
B.
C.
D.

emphasize the common good over individual profit


regulate business practices to protect consumers
provide social programs for low-income groups
reduce income taxes for high-income earners

109. Economist John Maynard Keynes would have been critical of governments that rigidly apply supply-side economic
policies because he believed that such policies attempt to stimulate economic growth exclusively by
A. providing financial incentives to the business sector
B. providing financial incentives to low-income earners
C. controlling inflation through wage and price controls
273669168

31

D. controlling inflation through the adjustment of lending rates


110. Laissez-faire capitalists oppose the formation of unions primarily because they believe that unions
A.
B.
C.
D.

restrict consumer confidence and spending


fail to act in the long-term interests of their members
encourage governments to spend lavishly on public works
distort the labour market and increase the cost of production

111. His reforms ushered in increased production of consumer goods, diversified and privatized agricultural
programs, and decentralized economic planning and government services.
The Soviet leader with whom these developments are most strongly associated is
A.
B.
C.
D.

Josef Stalin
Vladimir Lenin
Nikita Khrushchev
Mikhail Gorbachev

112. Policies of massive deficit reduction and extensive privatization in the global marketplace differ from the economic
policies recommended by most
A.
B.
C.
D.

left-wing economists
capitalist economists
laissez-faire economists
neo-conservative economists

_____________________________________________________________________________
USE THE FOLLOWING EXCERPT TO ANSWER QUESTIONS 113 to 115.
business likes tax cuts. It is another way of reducing the role of government. Like the deficit scare, tax cuts constrain government
spending on public services. This opens the door to private sector profit-making activity in education, health, and childcare. Of
course, public spending in these sectors holds out the promise of creating a more equal society. Private spending increases access for
the wealthy to more privileged services that only they can afford, while reducing access for everyone else.

113. The writer suggests that businesses advocate tax cuts primarily as a means to
A.
B.
C.
D.

combat the growth of the public debt


create economic opportunities in the private sector
implement fiscal policies during periods of recession
encourage equal economic opportunity for most citizens

114. Given the point of view of the writer, which of the following statements could be added to the excerpt?
A. The revenues thus saved could be used to pay down the massive national debt
273669168

32

B. Once again, the common good would be sacrificed to the practices of a market ideology
C. The tax burden of the welfare state has for too long been a crushing deterrent to the well-being of citizens
D. Individuals, for example, would no longer be frustrated by an overly inefficient health care system.

115. Members of which contemporary Canadian political party would most fully endorse the position taken by the writer?
A.
B.
C.
D.

Liberal Party
Canadian Alliance
New Democratic Party
Progressive Conservative Party.
USE THE MAP TO ANSWER QUESTIONS 116-118:

116. What observation can be clearly drawn from the map?


A.
B.
C.
D.

The Warsaw Pact was an effective deterrent to potential American aggression.


NATO was prepared to counter a Soviet nuclear first-strike.
One superpower was vulnerable to the nuclear capability of another.
One-tenth of the globe was vulnerable to nuclear attack.

117. The information provided by the map suggests a reason why the USSR
273669168

33

A.
B.
C.
D.

was developing a greater tank attack force.


was spending more on nuclear bases in Finland.
had feelings of insecurity and a siege mentality.
had a desire for communist world domination.

118. Considering the information in the map and the state of Soviet-American relations during the Cold War in the 1960s,
the most appropriate response for the Soviet defense minister would be to
A.
B.
C.
D.

follow a policy of isolationism.


initiate a strategy of appeasement.
encourage a program of domestic arms reduction.
plan a countermove to gain strategic advantage.
USE THE QUOTATION TO ANSWER QUESTIONS 119 and 120.

We are now free of that inordinate fear of communism which once led us to embrace any dictator who joined our fear. This
approach has failed --- with Vietnam the best example of its intellectual and moral poverty
... - former US president Jimmy Carter.

119. As a direct result of Carter's statement, the American government in its relations with the USSR was more willing to
follow a policy of
A.
B.
C.
D.

detente.
containment.
balance of power.
secret diplomacy.

120. The statement which clearly justifies a foreign policy based on nationalism is
A. Our world has become so closely interdependent that no one country or group of countries can live in
isolation.
B. Our world is divided into competing nations-states and if each nation took care of its own problems the
world would be a better place.
C. We are all citizens of the world, boundaries and nations are artificial things made by people.
D. The best approach is to list the major world problems and then determine which will require co-ordination
of national efforts.

_____________________________________________________________________________
121. An American initiative designed to aid European economic recovery after the Second World War was the
A.
B.
C.
D.

Marshall Plan.
Truman Doctrine.
Lend-Lease Program.
Alliance for Progress.

122. The origins of the Cold War are found primarily in the
A.
B.
C.
D.

dissatisfaction of the USSR with the territorial settlements following the Second World War.
clash of interests between the USSR and the Western democracies over the future of the Middle East.
dissatisfaction of the USSR with American control of the United Nations.
clash between the ideologies of the Western democracies and the communist nations.

123. The North Atlantic Treaty Organization was formed primarily to counter the
273669168

34

A.
B.
C.
D.

formation of the Warsaw Pact.


perceived Soviet threat in Europe.
attempted communist take-overs in Greece and Turkey.
opposition to the American military domination of Europe.

124. Which of the following events resulted in the emergence of a superpower sphere of influence?
A. The signing of the UN Charter, 1945.
B. The proclamation of the Truman Doctrine, 1947.
C. The signing of the Nuclear Test Ban Treaty, 1963.
D. The stationing of peacekeeping forces in Cyprus, 1964.
125. What action did the United States take in 1962 to prevent the placement of strategic weapons in Cuba?
A.
B.
C.
D.

The invasion of the Bay of Pigs.


A naval blockade of Soviet ships.
The severing of diplomatic relations with the USSR.
A preventive first strike against established missile bases.

_____________________________________________________________________________
USE THE MAP TO ANSWER QUESTIONS 126.

126. What is the best title for the map?


A.
B.
C.
D.
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The Price of Defeat: Germany's territorial Losses, 1919.


The Destruction of Czechoslovakia: The Aftermath of Munich, 1938.
Flashpoint Germany: Germany Divided, 1945.
Soviet Expansion: The Iron Curtain in Europe, 1949.
35

____________________________________________________________________________

127. Cruise missile testing in Alberta would be opposed most strongly by a person who favours maintaining peace
through nuclear
A.
B.
C.
D.

research.
deterrence.
disarmament.
proliferation.
USE THE SOURCES TO ANSWER QUESTIONS 128 to 132

SOURCE I
We have to get rid of those nuclear weapons. There is nothing worth having that can be obtained by nuclear war -- nothing material or
ideological-- no tradition that it can defend. It is utterly self-defeating. Those atomic bombs represent an unusable weapon. The only
use of an atomic bomb is to keep somebody else from using one. It can give us no protection -- only the doubtful satisfaction of
retaliation. Nuclear weapons offer us nothing but a balance of terror and a balance of terror is still terror
.....Geo. Wald

SOURCE II

it is estimated that $1150 billion was spent by all countries in fighting World War Two

128. Which of the following issues is raised by Source I and II?


A.
B.
C.
D.

Should nations decrease economic and financial aid to maintain world peace?
Should nations continue to spend money on the development of nuclear weapons?
Should nations form regional alliances to achieve a balance of power?
Should nations in the 'nuclear club' support an atmospheric teat ban treaty?

129. Which of the following research questions is most clearly addressed by Source II?
A. Which nations belong to the 'nuclear club'?
B. Why are nations producing new types of weapons?
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36

C. What is the destructive capability of nuclear weapons?


D. How much money does the USA spend on nuclear weapons?

130. Both sources illustrate the dangers that arise from a policy of
A.
B.
C.
D.

limited war.
secret diplomacy.
mutual deterrence.
collective security.

131. Which conclusion is best supported by the information in Source II?


A.
B.
C.
D.

The United Nations is ineffective.


Superpower domination of the world is increasing.
World expenditures on arms have reached unprecedented levels.
The 'nuclear club' is threatened by chemical and biological weapons.

132. Which course of action would a supporter of detente favour to lessen the serious risks indicated in Source I?
A.
B.
C.
D.

The reopening of SALT talks.


The stockpiling of nuclear weapons.
The strengthening of regional alliances.
The cancellation of the Helsinki Accords.

____________________________________________________________________________
USE THE INFORMATION TO ANSWER QUESTIONS 133 - 135.
One historian identifies the following events as important steps in the Cold War:
STEP 1...
STEP 2...
STEP 3...
STEP 4...
STEP 5...
STEP 6...

The Soviet 'takeover' of Eastern Europe, 1945-47.


Churchill's 'Iron Curtain' speech, March, 1946.
The Truman Doctrine and Marshall Plan, March and June, 1947.
The setting-up of the Cominform, October, 1947.
The communist coup in Czechoslovakia, February, 1948.
The Berlin Blockade, June, 1948 to May, 1949.

133. All of these steps in the Cold War most likely led to the
A.
B.
C.
D.

creation of a UN emergency police force


development of a thaw in east-west relations
formation of the North Atlantic Treaty Organization
replacement of Soviet conventional forces with nuclear weapons

134. From the perspective of the Soviet Union, Step 3 could be interpreted as an attempt by the US to
A. gain political and economic domination over Western Europe
B. challenge the military superiority of the Warsaw Pact
C. rearm and revitalize the Nazis in Germany
273669168

37

D. discredit Soviet participation in the UN


135. Which step in the Cold War brought the two superpowers closest to a direct military conflict?
A
B.
C.
D.

step 3
step 4
step 5
step 6

Key
1. A
2. D
3. A
4. D
5. A
6. B
7. A
8. A
9. A
10. C
11. D
12. A
13. B
14. D
15. A
16. A
17. B
18. C
19. D
20. A
21. D
22. A
23. A
24. B
25. A
26. B
27. C
28. C
29. A
30. C
31. A
32. C
33. D
34. B
35. D
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36. C
37. A
38. B
39. D
40. D
41. A
42. D
43. B
44. A
45. D
46. B
47. A
48. C
49. A
50. B
51. C
52. A
53. D
54. C
55. C
56. B
57. A
58. D
59. A
60. C
61. D
62. B
63. B
64. C
65. C
66. D
67. D
68. B
69. B
70. A

71. D
72. C
73. C
74. C
75. D
76. B
77. D
78. C
79. D
80. C
81. B
82. B
83. C
84. D
85. B
86. A
87. D
88. D
89. C
90. B
91. D
92. A
93. D
94. A
95. B
96. C
97. A
98. C
99. A
100. C
101. D
102. B
103. C
104. B
105. D
38

106.
107.
108.
109.
110.
111.
112.
113.
114.
115.

A
C
D
A
D
D
A
B
B
C

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116.
117.
118.
119.
120.
121.
122.
123.
124.
125.

C
C
D
A
B
A
D
B
B
B

126.
127.
128.
129.
130.
131.
132.
133.
134.
135.

C
C
B
C
C
C
A
C
A
D

39