Economic System and Market Structures AFCAT Questions

AFCAT Indian Economy

Economic System and Market Structures MCQ Questions


7.
In a command economy, the government ______________.
A.
Makes all economic decisions
B.
Encourages private ownership
C.
Relies on market forces
D.
Limits foreign trade
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ANSWER :
A. Makes all economic decisions
8.
Which of the following is a feature of a traditional economy?
A.
Open market trade
B.
Government monopoly
C.
Private competition
D.
Use of barter system
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ANSWER :
D. Use of barter system
9.
In a mixed economy, the government typically provides ______________.
A.
No role in the market
B.
Private property
C.
Sole control over production
D.
Public goods and services
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ANSWER :
D. Public goods and services
10.
The law of demand states that as the price of a good rises, the quantity demanded ______________.
A.
Depends on income levels
B.
Increases
C.
Remains the same
D.
Falls
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ANSWER :
D. Falls
11.
In which market structure do firms sell identical or standardized products?
A.
Oligopoly
B.
Monopoly
C.
Perfect competition
D.
Monopolistic competition
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ANSWER :
C. Perfect competition
12.
A monopoly exists when ______________.
A.
There are many firms
B.
Products are standardized
C.
One firm dominates the market
D.
There is no government regulation
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ANSWER :
C. One firm dominates the market