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Fundamentals of Political and Economic Systems Quiz

#1

Which economic system relies on private ownership of the means of production?

Capitalism
Explanation

Economic system with private ownership of production.

#2

Who is considered the father of modern economics?

Adam Smith
Explanation

Pioneer of modern economics.

#3

Who developed the theory of the 'invisible hand'?

Adam Smith
Explanation

Developer of 'invisible hand' theory.

#4

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

Customs and traditions determine economic decisions
Explanation

Characteristic of traditional economy.

#5

Who is known for their work 'The Wealth of Nations'?

Adam Smith
Explanation

Author of 'The Wealth of Nations'.

#6

What economic term describes the total amount of goods and services available for purchase by consumers?

Supply
Explanation

Economic term for available goods and services.

#7

In which political system does the government have complete control over the economy?

Communism
Explanation

Political system with total economic control.

#8

What is the main principle of laissez-faire economics?

Free market without government interference
Explanation

Economic principle of minimal government intervention.

#9

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

Government control over production and distribution
Explanation

Characteristic of command economy.

#10

What is the primary goal of a mixed economy?

Balancing economic growth with social welfare
Explanation

Goal of mixed economy.

#11

Which economic system advocates for the abolition of private property and a classless society?

Communism
Explanation

Economic system advocating classless society.

#12

What is the term for a situation where a single seller dominates the market, controlling the supply and price of a product or service?

Monopoly
Explanation

Situation of single market dominance.

#13

Who coined the term 'invisible hand' to describe the self-regulating nature of the market?

Adam Smith
Explanation

Originator of the term 'invisible hand'.

#14

Who introduced the concept of 'comparative advantage' in economics?

David Ricardo
Explanation

Originator of 'comparative advantage'.

#15

What is the key feature of a centrally planned economy?

Government control over resource allocation
Explanation

Key feature of centrally planned economy.

#16

Who proposed the 'Theory of the Second Best', suggesting that if one market imperfection exists, introducing another may actually improve welfare?

Richard Lipsey
Explanation

Originator of 'Theory of the Second Best'.

#17

Who introduced the concept of 'opportunity cost' in economics?

David Ricardo
Explanation

Originator of 'opportunity cost' concept.

#18

Who is credited with developing the concept of 'rational expectations' in economics?

Robert Lucas Jr.
Explanation

Developer of 'rational expectations' concept.

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