#1
Which of the following is a characteristic of a command economy?
Private ownership of production
Centralized government control
Market competition
Consumer sovereignty
#2
In a market economy, prices are primarily determined by:
Government regulations
Supply and demand
Labor unions
Consumer preferences
#3
Which of the following is a characteristic of a free-market economy?
Government ownership of all resources
Centralized decision-making by the government
Minimal government intervention
Equal distribution of wealth
#4
In a market system, who ultimately determines the allocation of resources?
Government officials
Consumers and producers
Financial institutions
Labor unions
#5
What is the primary mechanism for resolving the problem of scarcity in a market economy?
Government subsidies
Centralized planning
Price system
Barter system
#6
Which economic system allows individuals and businesses to own property and make economic decisions based on self-interest?
Command economy
Traditional economy
Market economy
Mixed economy
#7
Which economic system allows for the most individual freedom of choice?
Traditional economy
Command economy
Mixed economy
Market economy
#8
Which of the following is a characteristic of a mixed economy?
Private ownership of production
Centralized government control
No government intervention
Combination of private and public sectors
#9
Which of the following best describes laissez-faire capitalism?
Government intervention in the economy
Free-market economy with minimal government interference
Total government control over production and distribution
Socialist economic system
#10
What is a disadvantage of a centrally planned economy?
Inefficient allocation of resources
High level of income inequality
Lack of government control
Rapid economic growth
#11
Which economic system emphasizes collective ownership of the means of production?
Market economy
Command economy
Socialist economy
Mixed economy
#12
Which of the following is a disadvantage of a pure command economy?
Low level of government control
Potential for market inefficiency
High degree of consumer choice
Strong incentives for innovation
#13
What is the primary goal of a traditional economy?
Maximizing profit
Economic growth
Preserving cultural values
Promoting innovation
#14
What is the role of the invisible hand in a market economy, as described by Adam Smith?
Government regulation of prices
Central planning of production
Automatic self-regulation of markets
Social welfare programs
#15
What is the key principle underlying the law of demand?
As prices decrease, quantity demanded increases
As prices decrease, quantity demanded decreases
As prices increase, quantity demanded increases
As prices increase, quantity demanded decreases
#16
What is the role of entrepreneurship in a market economy?
To ensure equal distribution of wealth
To centralize decision-making
To innovate and take risks
To minimize government intervention
#17
Which of the following is a characteristic of perfect competition?
Many buyers and few sellers
Product differentiation
Price-setting power for individual firms
Barriers to entry
#18
What is the main function of a stock exchange in a market economy?
To regulate government spending
To facilitate the buying and selling of shares
To set prices for consumer goods
To determine interest rates