_____7.Countries that have changed from command to market economies will expect to find an increase in A choice. B price control. C government control. D public ownership.

_____8.If a command economy became a mixed economy, which industry would be most likely to remain under government control? A agriculture B coal mining C defense D motor car production

_____9. What happened in a planned economy but not happening in market economy?

A allocation by the government B allocation by the price system C monopoly D specialization

_____10. Why is a mixed economic system thought to be a satisfactory means of achieving environmentally friendly development?

A because all development is paid for by the government B because resources are being used properly C because it ensures development at lowest cost D because it is the most productive system

_____11.In a market economy, what does the entrepreneur decide?

A the technological innovations B the demand for the product C the price of the product D the level of profits

____12.What is always a feature of a mixed economy?

A All capital goods are produced in the public sector. B Resources are used in the public and the private sector. C The allocation of all resources is determined by the price mechanism. D The public sector is larger than the private sector.

_____13.Which of the following is an advantage of the market economic system?

A It aims for equality of income. B It ensures the provision of defense and law and order. C It gives an incentive to produce. D It reduces pollution and congestion

_____14.What is the most likely economic reason for the government returning a publicly owned industry to the private sector?

A to achieve economic efficiency B to control a strategic industry C to increase competition in that industry D to increase worker control

_____15.In a mixed economy, what determines the allocation of resources?

A central authorities only B central authorities and firms only C central authorities, firms and consumers D consumers only

_____16.What would reduce the role of central planning in an economy?

A increasing government spending B increasing public ownership of firms C increasing the role of markets D removing the profit motive