#1
Which of the following is a characteristic of a market economy?
Centralized planning
Private ownership of resources
Equal distribution of wealth
Government control of prices
#2
In a command economy, economic decisions are primarily made by:
Government authorities
Market forces
Private individuals
Foreign investors
#3
What is a key characteristic of a traditional economy?
Rapid technological advancements
Private ownership of resources
Reliance on customs and traditions to make economic decisions
Extensive government intervention
#4
What economic system is characterized by a combination of private and state ownership of resources?
Market economy
Mixed economy
Command economy
Traditional economy
#5
What economic system is often associated with subsistence farming and bartering?
Market economy
Mixed economy
Command economy
Traditional economy
#6
What is the primary goal of a market economy?
Equal distribution of wealth
Maximization of government control
Efficient allocation of resources
Complete elimination of private ownership
#7
What is the role of government intervention in a mixed economy?
To control all economic activities
To provide complete laissez-faire
To regulate certain aspects while allowing market forces to operate freely
To completely abolish private ownership of resources
#8
Which economic system is characterized by the government owning and controlling all resources and means of production?
Market economy
Mixed economy
Command economy
Traditional economy
#9
Which of the following best describes a centrally planned economy?
Private individuals make all economic decisions
Government controls all aspects of the economy
Market forces dictate production and consumption
There is no government intervention in economic activities
#10
Which of the following is a potential disadvantage of a market economy?
Efficient allocation of resources
Income inequality
Government control over production
Limited consumer choices
#11
Which of the following is a characteristic of laissez-faire capitalism?
Extensive government regulation
Government ownership of major industries
Free market with minimal government intervention
Equal distribution of wealth
#12
Which of the following is a role of government in a mixed economy?
Controlling all aspects of production
Ensuring complete laissez-faire
Providing public goods and regulating certain industries
Eliminating all private ownership
#13
In a free market economy, prices are determined by:
Government regulation
Supply and demand
Centralized planning
Subsidies
#14
In which economic system does the government play the smallest role in economic activities?
Command economy
Market economy
Mixed economy
Traditional economy
#15
What economic system allows for the most individual freedom in economic decision-making?
Market economy
Command economy
Mixed economy
Traditional economy
#16
Which economic system is most likely to lead to income equality?
Command economy
Mixed economy
Market economy
Traditional economy
#17
What is a disadvantage of a command economy?
High degree of competition
Potential for monopolies to form
Lack of incentive for innovation
Equal distribution of wealth
#18
Which economic system allows for the most flexibility in responding to changes in supply and demand?
Market economy
Mixed economy
Command economy
Traditional economy