What is more likely to be found in a free market economy than in a planned economy ?

Related Mcqs:

1. In Planned economy’ Production and distribution of Wealth is under control of_____________?

   A. Private sector
   B. Government
   C. Bank
   D. None of the above

2. The economics system planned economy is ?

   A. In which economists control production
   B. In which production and distribution of wealth is under government’s control
   C. In which technocrats control production
   D. In which government controls distribution

3. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

   A. R&D generating welfare improved technology
   B. development of more productive machinery
   C. new work rules promoting workers efficiency
   D. lower wages extracted from workers

4. If a producer has market power (can influence the price of the product in the market) then free market solutions ?

   A. are equitable.
   B. are efficient
   C. maximize consumer surplus
   D. are inefficient

5. In a command (planned) economy ?

   A. The price mechanism acts as an incentive
   B. Resources are allocated by market forces
   C. Individual firms make decisions for themselves about what to produce and how to produce it
   D. The public sector is large

6. In a planned or command economy, all the economics decisions are taken by the ?

   A. Consumers
   B. voters
   C. government
   D. Workers

7. Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

   A. H
   B. c
   C. d
   D. F

8. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?

   A. H
   B. F
   C. E
   D. c

9. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

10. An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

    A. free-trade
    B. autarkic
    C. open
    D. mixed