Site resources
Multiple-choice questions:
In a market economy, the most significant force in the distribution of goods and services is:
- government;
- the public sector;
- barter;
- the price system;
- planners.
Which one of the following statements can be applied to a mixed economy?
- the public and private sectors co-exist;
- only the private sector has an economic role;
- only the public sector has an economic role;
- the population has a balanced age-distribution;
- there are both large and small firms.
Which one of these statements is a valid criticism of the price-system?
- it cannot secure the allocation of goods and services;
- it will often lead to shortages and surpluses;
- it cannot provide luxury goods;
- long queues for necessities are likely;
- it may lead to great inequality of income and wealth.
In a market economy:
- prices are controlled by legislation;
- the price mechanism dictates which consumer wants shall be satisfied;
- there will be no advertising;
- there will be no monopolies;
- the government allocates resources.