#1
Which economic theory advocates for minimal government intervention in the market?
Classical economics
ExplanationAdvocates minimal government intervention in the market.
#2
What is the primary goal of socialism?
Equality and redistribution of wealth
ExplanationAims for equality and redistributing wealth.
#3
What is the central idea behind the concept of supply and demand in economics?
The higher the demand, the higher the price
ExplanationHigher demand leads to higher prices.
#4
Which of the following is not a characteristic of a command economy?
Private ownership of resources
ExplanationDoes not allow private ownership of resources.
#5
What is the main characteristic of a mixed economy?
Both private and government ownership of resources
ExplanationFeatures both private and government ownership of resources.
#6
Who is considered the father of capitalism?
Adam Smith
ExplanationConsidered the father of capitalism.
#7
Which economic system allows individuals and corporations to own property and businesses?
Capitalism
ExplanationAllows private ownership of property and businesses.
#8
Who is known for the theory of 'comparative advantage' in international trade?
David Ricardo
ExplanationKnown for the theory of comparative advantage.
#9
What is the primary goal of mercantilism?
Accumulating wealth and power for the state
ExplanationAims to accumulate wealth and power for the state.
#10
Who proposed the 'Laffer curve,' which suggests that there is an optimal tax rate for maximizing tax revenue?
Arthur Laffer
ExplanationProposed the Laffer curve for optimizing tax revenue.
#11
According to classical economic theory, what is the main driver of economic growth?
Private investment and savings
ExplanationPrivate investment and savings drive economic growth.
#12
Which economic theory emphasizes the role of government spending and taxation in regulating the economy?
Keynesian economics
ExplanationEmphasizes government spending and taxation in regulating the economy.
#13
What is the primary objective of a centrally planned economy?
Government control of production and distribution
ExplanationAims for government control of production and distribution.
#14
Which economic system emphasizes collective ownership of the means of production and the distribution of goods and services based on need?
Communism
ExplanationEmphasizes collective ownership and distribution based on need.
#15
Which economic system advocates for the absence of government intervention in economic affairs and promotes voluntary exchange?
Capitalism
ExplanationAdvocates absence of government intervention and voluntary exchange.