#1
In a command economy, who typically makes decisions regarding production and distribution?
Government authorities
ExplanationDecisions are centralized and made by government authorities.
#2
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and sellers
ExplanationLarge number of buyers and sellers with no individual market power.
#3
What does GDP stand for in economics?
Gross Domestic Product
ExplanationTotal value of goods and services produced in a country.
#4
Which of the following is NOT a factor of production?
Money
ExplanationMoney is a medium of exchange, not a factor of production.
#5
Which of the following is a characteristic of a market economy?
Prices determined by supply and demand
ExplanationMarket forces dictate prices and resource allocation.
#6
Which economic system is characterized by private ownership of the means of production and decentralized decision-making?
Capitalism
ExplanationPrivate ownership and decentralized decision-making define capitalism.
#7
What is an oligopoly?
A market structure with a few large firms
ExplanationMarket dominated by a small number of large firms.
#8
Which of the following is a feature of a monopolistic competition?
Product differentiation
ExplanationDifferentiated products with some degree of market power.
#9
What is the main goal of a centrally planned economy?
Equity and social welfare
ExplanationCentralized planning aims for equitable distribution.
#10
Which of the following is a characteristic of a mixed economy?
Combination of public and private sectors
ExplanationMix of private and government ownership.
#11
Which market structure is characterized by a single seller with significant market power?
Monopoly
ExplanationSingle seller with control over the market.