#1
Which economic system relies on the forces of supply and demand to determine prices and resource allocation?
Capitalism
ExplanationMarket-driven system where prices and allocation are determined by market forces.
#2
Who is often considered the father of modern economics?
Adam Smith
ExplanationScottish philosopher and economist known for his work 'The Wealth of Nations'.
#3
Which country is often cited as an example of a socialist economy?
Sweden
ExplanationKnown for its high level of social welfare and government intervention.
#4
Which of the following is a characteristic of a command economy?
Centralized planning
ExplanationGovernment makes decisions regarding production and resource allocation.
#5
Which economic system is characterized by private ownership of property and the means of production?
Capitalism
ExplanationPrivate individuals and businesses control resources and production.
#6
Which economist is associated with the theory of 'invisible hand' guiding the market?
Adam Smith
ExplanationConcept from 'The Wealth of Nations' suggesting self-interest leads to societal benefit.
#7
In a mixed economy, who primarily owns and controls the means of production?
No single entity
ExplanationOwnership and control are distributed among private entities and government.
#8
Which economic theory argues that government intervention in the market should be minimal to achieve efficiency?
Neoliberalism
ExplanationAdvocates for free-market policies with limited government intervention.
#9
What economic indicator measures the total value of goods and services produced in a country in a given period?
Gross Domestic Product (GDP)
ExplanationIndicator of a nation's economic output and productivity.
#10
Which social policy aims to provide financial assistance to individuals who are unemployed or unable to work?
Social Security
ExplanationGovernment program providing benefits to retirees, disabled, and unemployed.
#11
What is a primary feature of a centrally planned economy?
Government control
ExplanationGovernment dictates production and resource allocation.
#12
Which term describes the situation where the quantity of goods exceeds the demand, leading to decreased prices?
Surplus
ExplanationExcess supply relative to demand, causing price decreases.
#13
What is the main goal of a welfare state?
Ensure social equality
ExplanationAims to provide social safety nets and reduce socioeconomic disparities.
#14
Which economic system emphasizes communal ownership of property and the absence of social classes?
Communism
ExplanationAdvocates for collective ownership of means of production and equality.
#15
What is the primary goal of fiscal policy?
Promote economic growth
ExplanationGovernment's use of taxing and spending to influence the economy.
#16
Which social policy aims to provide healthcare coverage to individuals aged 65 and older in the United States?
Medicare
ExplanationGovernment program providing health insurance for seniors.
#17
Which social policy aims to provide financial assistance to low-income individuals and families in the United States?
Supplemental Nutrition Assistance Program (SNAP)
ExplanationGovernment assistance program for purchasing food for low-income individuals.