WRITE THE ANSWER ON THE SPACE BEFORE THE NUMBER

_____1. What can happen in a command economy that does not happen in a market economy?

A The allocation of resources are carried out through a plan. B There can be full employment of factors of production. C There can be different economic activities. D The government who plays little role in the economy.

_____2.In a mixed economy, resources are used as a result of

A the decisions of consumers only. B the decisions of firms only. C the decisions of consumers and firms. D the decisions of consumers, firms and government.

_____3.What is found in a market economy but not a command economy?

A division of labour B social welfare C government D the profit motive

_____4.There are more people in developing countries who go to other countries for work than in developed countries. Why is this so?

A Developed countries will use more labour than capital as it is skilled. B In developing countries, the consumers choice is very limited. C Less money needs to be spent on education in developed countries than in developing countries. D Production in developing countries is likely to rely more on capital than labour.

_____5. A free market economy is more likely than a command economy to encourage development because

A equality of income is encouraged. B factors of production would be employed efficiently. C there is government intervention. D social costs are taken into consideration.

_____6. Which statement about a mixed economy is correct?

A The business owners introduce technological change. B The government owns all major secondary sector industries. C The government owns the transport network. D The profit motive and social interests are combined.

_____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