Page 28 - 6727
P. 28
Economic Theory
9. What are the merits of socialist economy?
10. What are advantages and disadvantages of a mixed economy?
Multiple-Choice Questions
1. The basic economic problems are common to:
a) Capitalism;
b) Socialism;
c) Mixed economy;
d) all the above.
2. Traditional economy is a:
a) Subsistence economy;
b) Market economy;
c) Command economy;
d) Monetary economy.
3. The basic force that drives the capitalist economy is:
a) profit – motive;
b) technology;
c) government;
d) planning.
4. In a socialist economy, all decisions regarding production and
distribution are taken by:
a) central planning authority;
b) market forces;
c) customs and traditions;
d) private sector.
5. Red-tapism and corruption lead to:
a) inefficiency of production;
b) inequality of income and wealth;
c) absence of technology;
d) efficient use of resources.
28
