#1
Which of the following is a characteristic of a command economy?
Private ownership of resources
Centralized government control
Free market competition
Consumer sovereignty
#2
In a market economy, prices are primarily determined by:
Government regulations
Supply and demand
Central planning committees
Labor unions
#3
Which of the following best describes a traditional economy?
Government-controlled production and distribution
Reliance on custom and tradition to determine economic activities
Emphasis on individual ownership of resources
Market-driven allocation of resources
#4
What role does the government play in a mixed economy?
Minimal intervention
Complete control
No involvement
Regulates certain aspects while allowing market forces to operate
#5
Which economic system emphasizes private ownership of resources and decentralized decision-making?
Command economy
Market economy
Mixed economy
Traditional economy
#6
Which economic system emphasizes collective ownership of resources and central planning?
Market economy
Mixed economy
Command economy
Capitalist economy
#7
Which of the following is a potential disadvantage of a pure market economy?
Efficiency in resource allocation
Inequality of wealth distribution
Stability in prices
Government intervention
#8
Which of the following is a feature of a socialist economic system?
Private ownership of production
Minimal government intervention
Profit-driven motives
Government ownership of key industries
#9
What economic principle explains the law of diminishing returns?
Marginal cost
Marginal utility
Opportunity cost
Economies of scale
#10
Which economic theory is associated with the idea of 'invisible hand'?
Keynesian economics
Marxian economics
Classical economics
Behavioral economics
#11
What economic concept is represented by the phrase 'there is no such thing as a free lunch'?
Opportunity cost
Supply and demand
Consumer surplus
Marginal utility
#12
In a perfectly competitive market, what happens if there is a surplus of goods?
Prices rise
Prices fall
Prices remain constant
Producers stop production
#13
What economic concept is represented by the equation 'MVP = MP × P'?
Marginal revenue
Marginal cost
Marginal productivity theory of wages
Marginal utility
#14
Which economic theory suggests that government intervention is necessary to prevent market failures?
Laissez-faire economics
Classical economics
Keynesian economics
Monetarist economics
#15
What economic concept is illustrated by the phrase 'there is no such thing as a free lunch'?
Opportunity cost
Supply and demand
Consumer surplus
Marginal utility