#1
Which of the following is a characteristic of a market economy?
Private ownership of property
ExplanationIndividuals and businesses have the right to own property and make economic decisions.
#2
Which economic system is characterized by government ownership of key industries and centralized economic planning?
Communism
ExplanationGovernment controls major industries and centralizes economic decision-making.
#3
Which of the following is not a major economic system?
Barter system
ExplanationBarter system is a method of exchange, not an economic system like capitalism or socialism.
#4
What is the primary focus of a command economy?
Government control and planning
ExplanationGovernment determines what goods and services are produced and how resources are allocated.
#5
Which economic system is often associated with the concept of 'laissez-faire'?
Capitalism
ExplanationMinimal government intervention, allowing businesses to operate with little interference.
#6
In a capitalist economy, prices are primarily determined by:
Supply and demand
ExplanationPrices fluctuate based on the balance between what is supplied and what is demanded in the market.
#7
In which economic system are resources allocated based on the needs of the society?
Command economy
ExplanationGoods and services are distributed according to government plans rather than market forces.
#8
Which economic system tends to promote income equality and social welfare programs?
Socialism
ExplanationAims to reduce economic disparities through government intervention and social policies.
#9
Which economic system allows for a combination of government intervention and free market principles?
Mixed economy
ExplanationFeatures both privately-owned businesses and government involvement in the economy.
#10
Which of the following is a potential disadvantage of a command economy?
Limited consumer choices
ExplanationConsumers have fewer options as the government controls production.
#11
Which economic system places a high value on collective ownership and equality?
Socialism
ExplanationAdvocates for shared ownership of resources and aims for a more equal distribution of wealth.
#12
Which term describes the government's role in redistributing wealth to address social inequalities in a mixed economy?
Welfare state
ExplanationGovernment implements social programs to support disadvantaged members of society.
#13
Which of the following is a characteristic of a mixed economy?
Combination of public and private ownership
ExplanationFeatures a blend of private enterprise and government involvement in the economy.
#14
Which economic system allows for the greatest degree of individual freedom and choice?
Capitalism
ExplanationIndividuals have the freedom to own property, start businesses, and make economic decisions.