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..Complete trie following chart to see the similarities and differences among the three economic systems.
1. Ownership of means of production 2. Decisions regarding distribution of goods 3. Ownership of land 4. Ownership of industries 5. Ownership of small businesses

Capitalism

Communism

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1. What are some ways in which an individual might benefit from capitalism? from communism? from socialism? 2. What are the disadvantages to an individual of the three economic systems? 3. What role does the government play in determining a nation's economic system? 23

D. True or False
1. 2. 3. 4. 5. 6. Customs, a tax on imported goods, is collected by state governments. License fees for dogs and fishing are collected by the Federal government. Economic scarcity is the main reason for trade among nations. The socialist economic system thrives on competition among businesses. States collect inheritance taxes. People who live in the United States but are not citizens do not have to pay taxes.

E. Multiple Choice
1. Taxes are a primary source of support for all of the following areas except A. parks. B. television. C. education. D. defense. 2. Communism is based on A. private ownership of property and resources. B. government control of property and resources. C. competition among businesses and industries. D. a complex social class system. 3. Which of the following is a basic difference in the three economic systems? A. use of natural resources B. the annual production of goods C. dependence on foreign trade D. ownership of property and resources 4. Why do collectors place a higher value on some baseball cards than on others? A. Baseball card collectors have no other valuable objects. B. The means of production is controlled by the baseball commissioner. C. The scarcity of some baseball cards has made them valuable. D. The trade-off is poor. "^^f 5. What is the primary reason the United States trades with other countries? A. to obtain goods we do not have in our own country B. Most other countries' goods are superior to our own. C. to increase goodwill with other countries D. Most other countries are more industrialized.

26

D. Korean War 1. E a r l y on, N o r t h Korean f o r c e s almost a l l o f South Korea 2. Second phase o f t h e war a. General brought over from b. These t r o o p s N o r t h Korean army back across , almost t o t h e b o r d e r of 3. T h i r d phase o f t h e war a. ordered thousands o f soldiers or "volunteers" t o cross t h e r i v e r i n t o N o r t h Korea b. Chinese f o r c e s drove t h e U.N. f o r c e s 4. F i n a l phase o f t h e war a. U.N. f o r c e s dug i n . o f t h e 3'8th p a r a l l e l E. S e t t l e m e n t o f t h e War 1. General MacArthur c a l l e d f o r t h e U.S. to.use t h e _____ bomb and invade a. P r e s i d e n t the request b. Truman c o n t i n u e d t o o r d e r a l i m i t e d o r , war c. When MacArthur p r o t e s t e d , Truman _ him as head o f forces 2. J u l y , a s e t t l e m e n t was reached a. Korea was a t t h e 38th p a r a l l e l 3. Some f e l t t h e U.S. gained 4. Others c l a i m e d a f o r the p o l i c y o f , communism had been
L

F. P r e s i d e n t Eisenhower t a k e s over 1. P r e s i d e n t Eisenhower t a k e s over i n 2. Communist Ho Chi Minh t o o k over i n N o r t h Vietnam ^ R e s u l t - Vietnam s p l i t 3. China and S o v i e t Union helped Ho C h i Minh b e g i n a d r i v e i n t o South Vietnam * another Cold War c o n f l i c t . A Tough F o r e i g n Policy-_U.S. response t o Vietnam 1 . P r e s i d e n t Eisenhower s e n t and ' . into . . He defended h i s a c t i o n by c i t i n g t h e which s t a t e s John F o s t e r D u l l e s c a l l e d f o r ' against which meant ' D u l l e s s a i d he wanted t o " by u s i n g t h e p o l i c y of_

H. T r o u b l e i n t h e Middle E a s t - a n o t h e r C o l d War c o n f l i c t 1. In c r i s i s broke o u t i n t h e over t h e . x I . The E i s e n h o w e r D o c t r i n e 1 The Suez C a n a l C r i s i s c a u s e d 2. E i s e n h o w e r announced

J . The C o l d War a t Home 1. Americans f e a r e d 2. S e n a t o r . from W i s c o n s i n c l a i m e d t h e S t a t e Department was, "

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a . He n e v e r h i s charges b. He r u i n e d t h e l i v e s o f many famous p e o p l e b y ' a c c u s i n g them o f b e i n g c . The c h a r g e s l e d t o ; . d. Names c i r c u l a t e d on a 3. I n , McCarthy went t o o f a r a . He s a i d w i t h o u t p r o o f , t h a t b. I n . . , the Senate voted to

K Communism i n t h e C a r i b b e a n 1. J a n u a r y , Cuban g u e r r i l l a s , a . U.S. welcomed b. They hoped he would 2 . U.S. hopes were s h a t t e r e d a . C a s t r o began a c t i n g l i k e a b. C a s t r o announced he was c . A i d from d. U.S. had a J -. i n t h e U.S.

began n e i g h b o r n o t f a r from

L . A Thaw i n R e l a t i o n s 1. d i e d i n 1953 2. He was r e p l a c e d by a . who a g r e e d t o f o l l o w a p o l i c y o f w h i c h means 3. The U-2 i n c i d e n t c a u s e d r e l a t i o n s t o become t e n s e a . The U-2 i n c i d e n t was b. P r e s i d e n t E i s e n h o w e r but p r o m i s e d t o end to