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Which of the following is a distinguishing feature of a command system? |
Central Planing |
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Which of the following is a distinguishing feature of laissez-faire capitalism? |
Minimal government intervention |
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Example of command economies |
Cuba and North Korea |
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Economic system differ according to which two main characteristics |
Who owns the factors of production and the methods used to coordinate economic activity |
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Which of the following is not a typical characteristic of market system? |
A. Private property B. Freedom of enterprise C. Government ownership of most property resources D. Competition in product and resources market Answer is C |
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Freedom of enterprises |
Allows businesses, within broad limits, to choose what goods to produce |
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The use of money contributes to economic efficiency because |
It promotes specialization by overcoming the problems with barter |
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The competitive market system |
Encourages innovation because successful innovators are rewarded with economic profits |
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The market system’s answer to the fundamental question "Who will get the goods and services?" Is essentially |
"Those most willing and able to pay for them." |
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The market system’s answer to the fundamental question " What will be produced?" Is essentially |
"Goods and services that are profitable." |
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Which of the following guides sensible decisions regarding the management of business risk in market system? |
The profit and loss system |
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According to the circular flow model, product markets are where |
Business earn their revenues from households |
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In the circular flow model of the market system, households’ major role is to |
Buy products and sell resources |
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In a market system, resources will move away from an industry when |
Demand for the industry’s product is decreasing |
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All of the following statements describes a market economy except A. Government prescribes the market prices for goods and services. Answer A |
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