Question 1
What is meant by command economy?
A.
Resources allocated by government. B.
Incentive driving firms in free markets. C.
Differences in income and wealth between groups. D.
Resources allocated by market forces.
Question 2
A mixed economy includes:
A.
No markets B.
Public and private sectors C.
Only private firms D.
No government
Question 3
What is meant by free market economy?
A.
Resources allocated by market forces. B.
Measured by material goods consumed. C.
Administrative burden in command systems. D.
Incentive driving firms in free markets.
Question 4
What is meant by inequality?
A.
Incentive driving firms in free markets. B.
Differences in income and wealth between groups. C.
Market allocation with government intervention where necessary. D.
Measured by material goods consumed.
Question 5
What is meant by samuelson's 3 questions?
A.
Market allocation with government intervention where necessary. B.
Resources allocated by government. C.
What, how and for whom — answered differently in each system. D.
When S=D at market equilibrium.
Question 6
What is meant by profit motive?
A.
Differences in income and wealth between groups. B.
Market mechanism guiding self-interest to allocate resources. C.
Incentive driving firms in free markets. D.
Resources allocated by market forces.
Question 7
In a command economy resources are allocated by:
A.
Government B.
Banks C.
Only exports D.
Consumers only
Question 8
What is meant by allocative efficiency?
A.
Market mechanism guiding self-interest to allocate resources. B.
What, how and for whom — answered differently in each system. C.
Administrative burden in command systems. D.
When S=D at market equilibrium.
Question 9
What is meant by bureaucracy?
A.
Resources allocated by market forces. B.
What, how and for whom — answered differently in each system. C.
Differences in income and wealth between groups. D.
Administrative burden in command systems.
Question 10
What is meant by mixed economy?
A.
Measured by material goods consumed. B.
Market allocation with government intervention where necessary. C.
When S=D at market equilibrium. D.
What, how and for whom — answered differently in each system.
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