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Fundamentals of Business and Economic Systems Quiz

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Which of the following is a characteristic of a command economy?

Government control over resource allocation

Explanation

Centralized authority dictates economic decisions.

In a market economy, prices are primarily determined by:

Supply and demand forces

Explanation

Interaction of buyers and sellers sets prices.

Which economic system relies heavily on custom and tradition to determine resource allocation?

Traditional economy

Explanation

Customary practices shape economic activities.

What economic system is characterized by the absence of government intervention?

Market economy

Explanation

Minimal government involvement in economic affairs.

Which economic system emphasizes stability and continuity in resource allocation?

Traditional economy

Explanation

Steadfast adherence to established practices guides resource use.

Which economic system is characterized by a high degree of government intervention in resource allocation?

Command economy

Explanation

Extensive state control over economic activities.

Which of the following is a feature of a traditional economy?

Use of barter system

Explanation

Goods and services exchanged through bartering.

Which economic system is characterized by a mix of government intervention and market forces?

Mixed economy

Explanation

Combination of state regulation and private enterprise.

What is a primary goal of a traditional economy?

Preserving cultural customs and traditions

Explanation

Maintaining societal heritage guides economic decisions.

#10

What is the primary role of entrepreneurs in a market economy?

To innovate and take risks

Explanation

Entrepreneurs drive innovation and bear business risks.

#11

In a mixed economy, who typically owns and controls the factors of production?

Both government and private individuals

Explanation

Ownership shared between public and private entities.

#12

Which economic system typically has the highest degree of income equality?

Command economy

Explanation

Income distribution is more uniform under central control.

#13

What is a key characteristic of a free market economy?

Limited government intervention

Explanation

Government interference in markets is minimized.

#14

In a command economy, who primarily determines what goods and services are produced?

Government authorities

Explanation

Central authority dictates production decisions.

#15

Which of the following is a feature of a market economy?

Entrepreneurial freedom

Explanation

Individuals have liberty to innovate and pursue ventures.

#16

Which of the following is a disadvantage of a command economy?

Lack of consumer choice

Explanation

Consumers have limited options due to central planning.

#17

Which economic system tends to prioritize collective well-being over individual freedom?

Command economy

Explanation

Community welfare takes precedence over individual choice.

#18

What is a significant drawback of a traditional economy in today's globalized world?

Inefficient resource allocation

Explanation

Traditional methods may hinder adaptation to global markets.

#19

In a mixed economy, what typically guides resource allocation for public goods and services?

Centralized government planning

Explanation

Government direction influences allocation for public needs.

Fundamentals of Business and Economic Systems Quiz

Which of the following is a characteristic of a command economy?

In a market economy, prices are primarily determined by:

Which economic system relies heavily on custom and tradition to determine resource allocation?

What economic system is characterized by the absence of government intervention?

Which economic system emphasizes stability and continuity in resource allocation?

Which economic system is characterized by a high degree of government intervention in resource allocation?

Which of the following is a feature of a traditional economy?

Which economic system is characterized by a mix of government intervention and market forces?

What is a primary goal of a traditional economy?

What is the primary role of entrepreneurs in a market economy?

In a mixed economy, who typically owns and controls the factors of production?

Which economic system typically has the highest degree of income equality?

What is a key characteristic of a free market economy?

In a command economy, who primarily determines what goods and services are produced?

Which of the following is a feature of a market economy?

Which of the following is a disadvantage of a command economy?

Which economic system tends to prioritize collective well-being over individual freedom?

What is a significant drawback of a traditional economy in today's globalized world?

In a mixed economy, what typically guides resource allocation for public goods and services?

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