#1
In which economic system do individuals own the factors of production and make decisions based on self-interest?
Command economy
Mixed economy
Market economy
Traditional economy
#2
What is a characteristic of a perfectly competitive market?
High barriers to entry
Many sellers and buyers
Controlled prices by the government
Product differentiation
#3
Which economic system relies heavily on customs, traditions, and rituals to determine resource allocation?
Market economy
Command economy
Mixed economy
Traditional economy
#4
What is the term for the total value of all final goods and services produced within a country's borders in a specific period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Consumer Surplus
Balance of Trade
#5
What is the term for the total amount of money a firm receives by selling goods or services during a given period?
#6
Which economic system relies on supply and demand to determine the prices of goods and services?
Market economy
Command economy
Mixed economy
Traditional economy
#7
Which market structure features a single seller with significant control over prices?
Monopolistic competition
Oligopoly
Perfect competition
Monopoly
#8
What is a characteristic of monopolistic competition?
Identical products
High barriers to entry
Many firms selling differentiated products
Single seller dominating the market
#9
What is a characteristic of a mixed economy?
Complete government control over production
Private ownership of resources
Absence of consumer choice
No role for market forces
#10
Which market structure features a few large firms dominating the market?
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
#11
Which of the following is NOT a characteristic of monopolistic competition?
Product differentiation
Many sellers and buyers
Price taker
Low barriers to entry
#12
What is the term for a situation where one company controls the entire market for a product or service?
Cartel
Monopoly
Oligopoly
Perfect competition
#13
What is the main goal of a command economy?
Equitable distribution of wealth
Profit maximization
Government control over resources and production
Market-driven allocation of resources
#14
What is the term for the ability of a firm to control prices and output?
Market equilibrium
Elasticity
Market power
Marginal utility
#15
What is the primary characteristic of perfect competition?
Few sellers
Product differentiation
Price taker
Barriers to entry
#16
Which of the following best describes a centrally planned economy?
Private ownership of resources
Government controls production and allocation of resources
Market forces determine production and prices
Minimal government intervention
#17
What is a characteristic of an oligopoly?
Many firms selling differentiated products
Single seller dominating the market
Few large firms dominating the market
Complete government control over production
#18
Which economic system allows the government to redistribute wealth through taxation and social programs?
Traditional economy
Command economy
Market economy
Mixed economy