PrepTest 40, Section 3, Question 20
Investment banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against certain capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.
Investment banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against certain capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.
Investment banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against certain capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.
Investment banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against certain capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.
Which one of the following is an assumption required by the investment banker's argument?
No current government has reached as complete a state of democracy as it is possible for a government to reach.
The more democratic a country is, the less regulated its economy must be.
The need for economic stability makes the existence of partially democratic governments more probable than the existence of fully democratic governments.
A free-market economy is incompatible with a nondemocratic regime.
The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the recent past.
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