#1
Which of the following is a characteristic of a command economy?
Centralized government control over economic decisions
ExplanationGovernment has centralized control over economic decisions.
#2
What is a primary characteristic of a market economy?
Private ownership of resources
ExplanationResources are owned privately in a market economy.
#3
Which economic system is associated with the concept of 'invisible hand'?
Market economy
ExplanationMarket economy is associated with the concept of 'invisible hand'.
#4
What is a characteristic of a centrally planned economy?
Government control over resource allocation
ExplanationCentrally planned economy involves government control over resource allocation.
#5
Which economic system relies heavily on barter and trade?
Traditional economy
ExplanationTraditional economy relies heavily on barter and trade.
#6
In a traditional economy, how are economic decisions made?
Based on customs and traditions
ExplanationEconomic decisions are guided by customs and traditions in a traditional economy.
#7
Which economic system emphasizes government ownership of key industries and centralized economic planning?
Socialist economy
ExplanationSocialist economy emphasizes government ownership and centralized planning.
#8
Which economic system allows for both private ownership and government intervention?
Mixed economy
ExplanationMixed economy allows for both private ownership and government intervention.
#9
What is the primary role of the World Trade Organization (WTO)?
Promoting free trade and resolving trade disputes
ExplanationWTO primarily promotes free trade and resolves trade disputes.
#10
Which economic system is characterized by the absence of government intervention and regulation?
Market economy
ExplanationMarket economy is characterized by the absence of government intervention and regulation.
#11
What is one of the main criticisms of a command economy?
Inefficiency due to lack of competition
ExplanationCommand economies are criticized for inefficiency stemming from the absence of competition.
#12
Which international organization primarily aims to promote economic development and cooperation among member countries?
World Bank
ExplanationWorld Bank primarily aims to promote economic development and cooperation.
#13
Which economic theory advocates for government intervention to address market failures and ensure social welfare?
Keynesian economics
ExplanationKeynesian economics advocates for government intervention to address market failures and ensure social welfare.
#14
What is the primary function of the World Bank?
Providing loans and grants for development projects in poorer countries
ExplanationWorld Bank primarily provides loans and grants for development projects in poorer countries.
#15
Which organization aims to facilitate cooperation between oil-producing countries to stabilize oil prices and ensure a steady income for member nations?
Organization of the Petroleum Exporting Countries (OPEC)
ExplanationOPEC aims to facilitate cooperation between oil-producing countries to stabilize oil prices and ensure a steady income.