Economic systems are primarily concerned with:
A) Deciding who owns resources and how they are allocated
B) Determining how governments can control prices
C) Deciding who controls military forces
D) Establishing policies for international trade
Which of the following is a key feature of a capitalist economy?
A) Centralized government control of production
B) Market-driven allocation of resources
C) Collective ownership of property
D) Economic equality among citizens
In a socialist economy, the government typically:
A) Owns and controls the means of production
B) Encourages private ownership of businesses
C) Provides only limited government services
D) Relies on the market forces to allocate resources
Which of the following is characteristic of a mixed economy?
A) Complete government ownership of resources
B) Full reliance on market forces without government intervention
C) Both private and public sector participation in economic activities
D) A total absence of private ownership
In a capitalist economic system, what drives the allocation of resources?
A) Government directives
B) Central planning
C) Consumer demand and producer supply
D) Cultural preferences
Which economic system aims to achieve equality through government intervention in wealth distribution?
A) Capitalism
B) Socialism
C) Mixed Economy
D) Feudalism
The key goal of capitalism is:
A) To distribute wealth equally among all citizens
B) To maximize individual profits and economic efficiency
C) To provide free healthcare to all citizens
D) To eliminate private property
In a socialist economy, the government typically determines:
A) The pricing of goods and services through the market
B) The allocation of resources and production of goods
C) The wages paid to workers in private firms
D) The profits earned by individual businesses
Which economic system is most associated with the idea of “laissez-faire” economics?
A) Socialism
B) Capitalism
C) Mixed Economy
D) Feudalism
In a mixed economy, the government’s role is to:
A) Eliminate all private ownership
B) Regulate certain industries and provide public goods
C) Control the entire economy
D) Prevent any market competition
Which of the following is an advantage of socialism?
A) Greater income inequality
B) Efficient allocation of resources through market forces
C) Provision of basic needs like education and healthcare for all
D) Emphasis on individual freedom and competition
A pure capitalist economy relies on:
A) Central planning to set prices and wages
B) Government control over the distribution of resources
C) Market forces such as supply and demand to determine prices
D) Equal distribution of resources by the state
A major disadvantage of a purely capitalist economy is:
A) Lack of consumer choices
B) Government inefficiency
C) Inequality in wealth distribution
D) Overregulation of the market
In socialism, what is typically not controlled by the government?
A) Private property
B) Wages and salaries
C) Education and healthcare
D) Natural resources
A mixed economy tries to combine the benefits of:
A) Central planning and private ownership
B) Capitalism and socialism
C) Laissez-faire and government regulation
D) Private ownership and equal distribution of resources
Which of the following is a characteristic of a capitalist society?
A) Production is planned by the government
B) Businesses operate for profit with minimal government interference
C) Resources are distributed according to needs
D) Wealth is equally shared among citizens
In a socialist economy, wealth is typically distributed:
A) According to the individual’s ability to produce
B) Equally among all citizens
C) Based on market demand and supply
D) In proportion to consumer demand
Which of the following would be most likely in a mixed economy?
A) The government completely controls all industries
B) Only private businesses provide healthcare
C) The government provides some services while leaving others to the private sector
D) No government regulation of the economy
A key difference between capitalism and socialism is that:
A) Socialism focuses on maximizing individual profit, while capitalism focuses on collective well-being
B) Capitalism allows for private ownership, while socialism promotes government ownership of resources
C) Capitalism provides free education to all citizens, while socialism does not
D) Socialism allows competition in the market, while capitalism does not
Which of the following is a drawback of socialism?
A) Inefficiency in production and allocation of resources
B) Lack of access to basic services like healthcare
C) Economic inequality
D) Greater market competition
In a mixed economy, the government’s intervention primarily aims to:
A) Eliminate competition between businesses
B) Encourage economic inequality
C) Provide public goods and regulate industries for public welfare
D) Restrict the growth of private companies
The primary goal of socialism is to:
A) Maximize private profits
B) Achieve equality in wealth distribution
C) Encourage international trade
D) Foster individual entrepreneurship
Which economic system places the least emphasis on government intervention?
A) Capitalism
B) Socialism
C) Mixed economy
D) Communism
The concept of “laissez-faire” is most associated with which economic system?
A) Capitalism
B) Socialism
C) Mixed economy
D) Command economy
In a mixed economy, the government typically intervenes in areas such as:
A) Determining wages for all businesses
B) Providing essential public services like education and healthcare
C) Setting the prices for all goods and services
D) Banning all forms of private property
Which of the following would be a likely outcome of a capitalist economy?
A) Equal distribution of income and wealth
B) High levels of government regulation
C) A competitive market with diverse goods and services
D) Central planning of production and distribution
In a socialist economy, the government typically controls:
A) Most aspects of the production and distribution of goods
B) Only minor sectors like transportation
C) The price of imported goods
D) The exchange rate for international trade
Which economic system allows the most individual freedom in choosing what to produce and consume?
A) Capitalism
B) Socialism
C) Mixed economy
D) Command economy
