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