#1
Which economic system relies on private ownership of the means of production and market-driven decisions?
Capitalism
ExplanationPrivate ownership and market-driven decisions characterize capitalism.
#2
In governance, what does the term 'fiscal policy' primarily focus on?
Government spending and taxation
ExplanationFiscal policy primarily deals with government spending and taxation.
#3
In a parliamentary system of governance, who is typically the head of government?
Prime Minister
ExplanationIn a parliamentary system, the Prime Minister is the head of government.
#4
What is the primary role of the Federal Reserve in the United States?
Monetary policy and financial regulation
ExplanationThe Federal Reserve oversees monetary policy and financial regulation in the United States.
#5
Which economic concept refers to the increase in the general price level of goods and services over time?
Inflation
ExplanationInflation represents the general rise in prices of goods and services over time.
#6
In governance, what does the term 'checks and balances' refer to?
Ensuring a balance between government branches
ExplanationChecks and balances ensure power distribution among governmental branches.
#7
What is the primary goal of a command economy?
Economic equality
ExplanationCommand economies aim for equal distribution of resources.
#8
Which economic system combines elements of both socialism and capitalism?
Mixed Economy
ExplanationMixed economies blend socialism and capitalism for balanced resource allocation.
#9
What is the primary function of the World Trade Organization (WTO)?
International trade regulation
ExplanationThe WTO primarily regulates international trade agreements.
#10
What is the main focus of microeconomics?
Individual markets and firms
ExplanationMicroeconomics studies individual markets and firms' behavior.
#11
Who is known for the concept of the 'Invisible Hand' in economics?
Adam Smith
ExplanationAdam Smith introduced the concept of the 'Invisible Hand' to explain market dynamics.
#12
What is the purpose of a sovereign wealth fund in economic terms?
Diversify investment portfolios
ExplanationSovereign wealth funds aim to diversify investment portfolios for long-term gains.
#13
Who proposed the concept of the 'Theory of Comparative Advantage'?
David Ricardo
ExplanationDavid Ricardo introduced the 'Theory of Comparative Advantage' to explain trade benefits.
#14
What is the primary aim of a central bank in a country's economic system?
Monetary policy and financial stability
ExplanationCentral banks focus on monetary policy and financial stability within an economy.
#15
What is the primary purpose of the International Monetary Fund (IMF)?
Facilitate international monetary cooperation
ExplanationThe IMF aims to foster international monetary cooperation and financial stability.