#1
Which of the following is a characteristic of a market economy?
Centralized planning by the government
Private ownership of resources
Equal distribution of wealth
Government control over prices
#2
In a command economy, economic decisions are primarily made by:
Government authorities
Consumers
Market forces
Private businesses
#3
In which economic system are prices determined solely by supply and demand?
Command economy
Market economy
Mixed economy
Traditional economy
#4
Which economic system relies heavily on customs, traditions, and cultural beliefs to make economic decisions?
Market economy
Command economy
Mixed economy
Traditional economy
#5
Which economic system allows for a high degree of individual freedom and entrepreneurship?
Market economy
Command economy
Mixed economy
Traditional economy
#6
What is a characteristic of a centrally planned economy?
Minimal government intervention
Private ownership of resources
State control over production decisions
Free market forces
#7
Which economic system emphasizes public ownership of resources and centralized planning?
Market economy
Mixed economy
Command economy
Traditional economy
#8
What is a key characteristic of a mixed economy?
Absence of private ownership
Strict government control
Limited government intervention
Complete reliance on market forces
#9
What is the primary goal of a traditional economy?
Maximizing profit
Achieving economic equity
Preserving cultural traditions
Promoting technological innovation
#10
What is a disadvantage of a centrally planned economy?
Efficient allocation of resources
Dynamic innovation
Lack of consumer choice
Decentralized decision-making
#11
What is the role of competition in a market economy?
To promote cooperation among firms
To eliminate consumer choice
To allocate resources efficiently
To discourage innovation
#12
In a command economy, what determines the prices of goods and services?
Supply and demand
Market competition
Government authorities
Consumer preferences
#13
Which coordination mechanism involves individuals pursuing their self-interest in a competitive market setting?
Central planning
Market coordination
Network coordination
Hierarchical coordination
#14
Which coordination mechanism relies on a system of rules and regulations to allocate resources?
Market coordination
Hierarchical coordination
Network coordination
Bureaucratic coordination
#15
Which coordination mechanism relies on a hierarchy of authority to allocate resources?
Market coordination
Network coordination
Hierarchical coordination
Bureaucratic coordination
#16
Which coordination mechanism relies on informal relationships and trust to allocate resources?
Market coordination
Network coordination
Hierarchical coordination
Bureaucratic coordination
#17
Which coordination mechanism involves the use of contracts and legal agreements to facilitate transactions?
Market coordination
Network coordination
Hierarchical coordination
Bureaucratic coordination