#1
Which of the following is a characteristic of a market economy?
Private ownership of resources
ExplanationOwnership by individuals drives resource allocation.
#2
In a command economy, economic decisions are primarily made by:
Government authorities
ExplanationCentralized authority controls economic decisions.
#3
What is a key characteristic of a traditional economy?
Reliance on customs and traditions to make economic decisions
ExplanationCustoms guide economic choices.
#4
What economic system is characterized by a combination of private and state ownership of resources?
Mixed economy
ExplanationBlend of private and public ownership.
#5
What economic system is often associated with subsistence farming and bartering?
Traditional economy
ExplanationRelies on ancient economic practices.
#6
What is the primary goal of a market economy?
Efficient allocation of resources
ExplanationOptimizing resource distribution.
#7
What is the role of government intervention in a mixed economy?
To regulate certain aspects while allowing market forces to operate freely
ExplanationBalancing regulation and market freedom.
#8
Which economic system is characterized by the government owning and controlling all resources and means of production?
Command economy
ExplanationGovernment holds complete economic control.
#9
Which of the following best describes a centrally planned economy?
Government controls all aspects of the economy
ExplanationCentral authority governs economic activities.
#10
Which of the following is a potential disadvantage of a market economy?
Income inequality
ExplanationMarket freedom may exacerbate income gaps.
#11
Which of the following is a characteristic of laissez-faire capitalism?
Free market with minimal government intervention
ExplanationMarket operates with minimal state interference.
#12
Which of the following is a role of government in a mixed economy?
Providing public goods and regulating certain industries
ExplanationBalancing public needs and industry oversight.
#13
In a free market economy, prices are determined by:
Supply and demand
ExplanationMarket dynamics set pricing.
#14
In which economic system does the government play the smallest role in economic activities?
Market economy
ExplanationLimited government intervention in markets.
#15
What economic system allows for the most individual freedom in economic decision-making?
Market economy
ExplanationIndividual choice drives economic decisions.
#16
Which economic system is most likely to lead to income equality?
Command economy
ExplanationEqual distribution under centralized control.
#17
What is a disadvantage of a command economy?
Lack of incentive for innovation
ExplanationCentral control stifles innovation incentives.
#18
Which economic system allows for the most flexibility in responding to changes in supply and demand?
Market economy
ExplanationFlexible market dynamics adjust to shifts.