Passage 9
　 Most economists in the united States seemcaptivated by the spell of the free market. Conse-quently， nothing seems good or normal that doesnot accord with the requirements of the free market.（5） A price that is determined by the seller or， forthat matter， established by anyone other than theaggregate of consumers seems pernicious. Accord-ingly， it requires a major act of will to think ofprice-fixing （the determination of prices by the（10） seller） as both “normal” and having a valuableeconomic function. In fact， price-fixing is normalin all industrialized societies because the indus-trial system itself provides， as an effortless conse-quence of its own development， the price-fixing（15） that it requires. Modern industrial planningrequires and rewards great size. Hence，a comparatively small number of large firms willbe competing for the same group of consumers.That each large firm will act with consideration of（20） its own needs and thus avoid selling its productsfor more than its competitors charge is commonlyrecognized by advocates of free-market economictheories. But each large firm will also act withfull consideration of the needs that it has in（25） common with the other large firms competing forthe same customers. Each large firm will thusavoid significant price-cutting， because price-cutting would be prejudicial to the common interestin a stable demand for products. Most economists（30） do not see price-fixing when it occurs becausethey expect it to be brought about by a number ofexplicit agreements among large firms； it is not.
　 Moreover， those economists who argue that　 allowing the free market to operate without inter-（35） ference is the most efficient method of establishingprices have not considered the economies of non-socialist countries other than the United states.These economies employ intentional price-fixing，usually in an overt fashion. Formal price-fixing（40） by cartel and informal price-fixing by agreementscovering the members of an industry are common-place. Were there something peculiarly efficientabout the free market and inefficient about price-fixing， the countries that have avoided the first（45） and used the second would have suffered drasticallyin their economic development. There is no indica-tion that they have.
　 Socialist industry also works within a frame-work of controlled prices. In the early 1970‘s，（50） the Soviet Union began to give firms and industriessome of the flexibility in adjusting prices that amore informal evolution has accorded the capitalistsystem. Economists in the United States havehailed the change as a return to the free market.（55） But Soviet firms are no more subject to pricesestablished by a free market over which theyexercise little influence than are capitalist firms；rather， Soviet firms have been given the power tofix prices.

1. The primary purpose of the passage is to
　（A） refute the theory that the free market plays auseful role in the development of industrializedsocieties
　（B） suggest methods by which economists and members　of the government of the United States canrecognize and combat price-fixing by large firms
　（C） show that in industrialized societies price-fixing andthe operation of the free market are not onlycompatible but also mutually beneficial
　（D） explain the various ways in which industrializedsocieties can fix prices in order to stabilize the freemarket
　（E） argue that price-fixing， in one form or another， is aninevitable part of and benefit to the economy of anyindustrialized society

2. The passage provides information that would answer　 which of the following questions about price-fixing？
Ⅰ.What are some of the ways in which prices can befixed？
Ⅱ. For what products is price-fixing likely to be moreprofitable that the operation of the free market？
Ⅲ.Is price-fixing more common in socialistindustrialized societies or in nonsocialistindustrialized societies？
　（A） Ⅰonly　
　（B） Ⅲ only　
　（C） Ⅰand Ⅱonly
　（D） Ⅱand Ⅲ only
　（E） Ⅰ，Ⅱ，and Ⅲ

3. The author‘s attitude toward “Most economists in the　United States”（line 1） can best be described as
　（A） spiteful and envious
　（B） scornful and denunciatory
　（C） critical and condescending
　（D） ambivalent but deferential
　（E） uncertain but interested

4. It can be inferred from the author‘s argument that a　price fixed by the seller “seems pernicious”（line 7）because
　（A） people do not have confidence in large firms
　（B） people do not expect the government to  regulate prices
　（C） most economists believe that consumers as a group should determine prices
　（D） most economists associate fixed prices with communist and socialist economies
　（E） most economists believe that no one group should determine prices

5. The suggestion in the passage that price-fixing in industrialized societies is normal arises from the　 author‘s statement that price-fixing is
　（A） a profitable result of economic development
　（B） an inevitable result of the industrial system
　（C） the result of a number of carefully organized decisions
　（D） a phenomenon common to industrialized and nonindustrialized societies
　（E） a phenomenon best achieved cooperatively bygovernment and industry

6. According to the author， price-fixing in nonsocialist　countries is often
　（A） accidental but productive
　（B） illegal but useful
　（C） legal and innovative
　（D） traditional and rigid
　（E） intentional and widespread

7. According to the author， what is the result of the Soviet　Union‘s change in economic policy in the 1970’s
　（A） Soviet firms show greater profit.
　（B） Soviet firms have less control over the free market.
　（C） Soviet firms are able to adjust to tech nological advances.
　（D） Soviet firms have some authority to fix prices.
　（E） Soviet firms are more responsive to the free market.

8. With which of the following statements regarding the　behavior of large firms in industrialized societies　would the author be most likely to agree？
　（A） The directors of large firms will continue to anticipate the demand for products
　（B） The directors of large firms are less interested in　achieving a predictable level of profit than in　achieving a large profit.
　（C） The directors of large firms will strive to reduce the　costs of their products
　（D） Many directors of large firms believe that the　government should establish the prices that will be　charged for products
　（E） Many directors of large firms believe that the price charged for products is likely to increase annually.

9. In the passage， the author is primarily concerned with
　（A） predicting the consequences of a practice
　（B） criticizing a point of view
　（C） calling attention to recent discoveries
　（D） proposing a topic for research
　（E） summarizing conflicting opinions