Economics Practice Quiz 126

Q1.What does the term 'market' in economics NOT necessarily involve?

A. Free interaction of buyers and sellers B. Exchange of commodities C. A physical marketplace D. Price signals

Q2.How can buyers and sellers interact in a market?

A. Only through physical meetings B. Through telephone or internet C. Only through government intermediaries D. Through barter only

Q3.What is the defining feature of a market?

A. Government regulation B. Arrangements that allow people to buy and sell commodities freely C. Fixed prices D. Central planning

Q4.What brings coordination between the activities of millions of isolated individuals in a market system?

A. Government planning B. Price signals C. Social norms D. Trade unions

Q5.In a market system, what happens if buyers demand more of a certain good?

A. The price of that good falls B. The price of that good rises C. The government increases production D. The good is rationed

Q6.What does a rise in price of a good signal to producers in a market system?

A. That the good is overproduced B. That society wants more of that good than currently produced C. That the government should intervene D. That the good is of low quality

Q7.How are the central problems of 'how much and what to produce' solved in a market system?

A. By government directives B. By coordination through price signals C. By tradition and custom D. By international trade agreements

Q8.What type of economy do all real-world economies represent?

A. Centrally planned economies B. Market economies C. Mixed economies D. Traditional economies

Q9.Which country is cited as the closest example of a centrally planned economy for the major part of the twentieth century?

A. India B. United States of America C. China D. Russia

Q10.In which country is the role of the government minimal?

A. India B. China C. United States of America D. Russia

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Economics Practice Quiz 126