Topic Questions (MCQ – EASY): Economic Systems – 3auk

Which of the following describes a common feature of a planned economy?

Pivate ownership of all property

Centralized resource allocation

The free market always determine prices.

There is competition in most markets.

Which of the following statements describes the defining characteristic of a mixed economy?

It is an economy where the government and individual producers and consumers jointly determine the allocation of resources.

It is an economy that has both monopolies and purely competitive industries.

It is an economy that has features of both more economically developed and less economically developed economies.

It is an economy that produces a mixture of agricultural and industrial products.

During the transition from a planned economy to a market economy, why does the short-term national output typically decrease?

A decrease in the desire to save.

An increase in migration from other countries.

An increase in structural unemployment.

What effect can be expected when an economy shifts from state planning to a market system?

Consumer choice is limited.

Enterprise is not promoted.

The amount of innovation is reduced.

The production of merit goods is decreased.