1. Which of the following characteristics is NOT a potential source of inefficiency in market capitalist economies? a) Externalities b) Monopoly power c) Franchise taxes d) Imperfect information 2. What is the key challenge to actually implementing a planned socialist economic system in practice? a) Large amount of complex information is required b) Planned socialist economies cannot generate tax revenue c) Planned socialist economies are always short on capital d) Income inequality is necessarily worse in planned socialist economies 3. What were the common short-term outcomes as socialist economies in Eastern Europe transitioned toward market capitalism after 1991? a) Inflation, unemployment, and declining output b) Inflation and booming output c) Deflation and labor shortages d) Labor shortages and rising wages