#1
Which of the following is a characteristic of a market economy?
Centralized decision-making by the government
Private ownership of property and resources
Equal distribution of wealth among citizens
Fixed prices set by the government
#2
Which of the following is NOT a characteristic of a market economy?
Private ownership of property
Central planning by the government
Freedom of choice for consumers
Competition among producers
#3
In a market economy, what is the role of the government?
To control all economic activities
To intervene only in case of emergencies
To regulate certain aspects while allowing market forces to operate
To set prices for all goods and services
#4
Which of the following best describes the role of entrepreneurs in a market economy?
To work for the government
To consume goods and services
To innovate, take risks, and create new businesses
To regulate the market
#5
Which of the following is a characteristic of a mixed economy?
Government controls all economic activities
Private individuals own all resources
Economic decisions are made solely by the market
Both government and private individuals play a role in economic decision-making
#6
In a market economy, prices are primarily determined by:
Government regulations
Supply and demand
International trade agreements
Consumer preferences
#7
What is the role of competition in a market economy?
To ensure everyone gets the same share
To eliminate consumer choice
To encourage innovation and efficiency
To promote government intervention
#8
Which economic concept suggests that individuals acting in their self-interest benefit society as a whole?
Elasticity
Consumer surplus
The invisible hand
Monetary policy
#9
In a market economy, who determines what goods and services are produced?
Consumers
Government officials
Producers
International organizations
#10
What term describes the total value of all goods and services produced in a market economy within a specific time period?
Gross National Product (GNP)
Net Exports
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
#11
In a market economy, what typically happens when demand for a product increases?
Prices decrease
Producers decrease supply
Prices increase
Producers lower quality
#12
What is a potential drawback of a market economy?
Inefficient allocation of resources
Lack of incentives for innovation
High levels of government control
Equal distribution of wealth
#13
What economic term describes the idea that resources are limited but wants and needs are unlimited?
Scarcity
Surplus
Monopoly
Equilibrium
#14
What is the term for the level of income at which a person or family can afford the basic necessities of life?
Absolute poverty
Relative poverty
Gross domestic product
Consumer price index
#15
What economic concept refers to the idea that individuals or firms can specialize in the production of goods and services in which they have a comparative advantage?
Absolute advantage
Opportunity cost
Comparative advantage
Marginal utility
#16
What term describes the situation where there is only one buyer in a market?
Oligopoly
Monopoly
Perfect competition
Monopsony