#1
Which economic system relies on private ownership of property and businesses to allocate resources?
Capitalism
ExplanationPrivate ownership drives resource allocation.
#2
In a traditional economy, how are economic decisions made?
Based on historical traditions and customs
ExplanationDecisions made according to cultural practices.
#3
Which economic system is most closely associated with a free market economy?
Capitalism
ExplanationFree market economy is linked with capitalism.
#4
What is the primary role of government in a market economy?
To intervene in the economy as little as possible
ExplanationGovernment minimizes intervention in markets.
#5
In a market economy, resource allocation is primarily determined by:
Supply and demand
ExplanationAllocation based on market forces of supply and demand.
#6
Which economic system is characterized by government ownership of major industries and centralized decision-making?
Socialism
ExplanationMajor industries owned by government; centralized decisions.
#7
What is the primary goal of resource allocation in economics?
To ensure economic efficiency
ExplanationEfficient use of resources is the primary aim.
#8
What is the primary role of prices in a market economy?
To allocate resources efficiently
ExplanationPrices efficiently distribute resources.
#9
Which economic system is often associated with a command economy?
Communism
ExplanationCommand economies are linked with communism.
#10
Which economic system allows for the most individual freedom in economic decision-making?
Capitalism
ExplanationCapitalism offers the greatest economic freedom.
#11
In a mixed economy, how are resources allocated?
Through a combination of market forces and government intervention
ExplanationBlend of market forces and government involvement.
#12
Which economic system allows for a combination of privately owned businesses and government intervention in the economy?
Mixed economy
ExplanationBlend of private ownership and government intervention.
#13
Which economic system is based on the principle of 'from each according to his ability, to each according to his needs'?
Communism
ExplanationCommunism's principle of resource distribution.
#14
What is the key difference between capitalism and socialism?
In capitalism, resource allocation is determined by supply and demand, while in socialism, it is determined by central planners.
ExplanationCapitalism relies on market forces; socialism relies on central planners.
#15
What is the role of government in a laissez-faire economic system?
To intervene in the economy as little as possible
ExplanationGovernment minimally interferes in the economy.
#16
What is the main advantage of a market economy?
It allows for rapid economic growth.
ExplanationFacilitates rapid economic expansion.
#17
What is the main goal of a centrally planned economy?
To ensure economic equality
ExplanationCentrally planned economies aim for economic equality.
#18
Which economic system is characterized by a combination of government ownership of key industries and private ownership of businesses?
Mixed economy
ExplanationCombines government and private ownership.