Economic Systems and Market Structures CDS Questions

CDS Economy

Economic Systems and Market Structures MCQ Questions


1.
In a capitalist economy, the central economic problems of what, how and for whom to produce are primarily solved by
A.
The price mechanism / market forces
B.
Central planning authority
C.
Government directives
D.
Tradition and custom
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ANSWER :
A. The price mechanism / market forces
2.
The term 'invisible hand' was introduced by which economist to describe the self-regulating nature of the market?
A.
John Maynard Keynes
B.
Karl Marx
C.
Alfred Marshall
D.
Adam Smith
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ANSWER :
D. Adam Smith
3.
Which of the following is NOT a feature of a capitalist economy?
A.
Private ownership of means of production
B.
Freedom of enterprise
C.
Central economic planning by the State
D.
Profit motive as the guiding force
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ANSWER :
C. Central economic planning by the State
4.
In a socialist economy, the means of production are owned and controlled by
A.
Private individuals
B.
Foreign investors
C.
The State / community
D.
Joint-stock companies
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ANSWER :
C. The State / community
5.
The book 'Das Kapital', which forms the ideological basis of socialism, was written by
A.
Adam Smith
B.
Karl Marx
C.
David Ricardo
D.
J. M. Keynes
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ANSWER :
B. Karl Marx
6.
A mixed economy is characterized by
A.
Coexistence of both public and private sectors
B.
Only public sector enterprises
C.
Only private sector enterprises
D.
Absence of government intervention
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ANSWER :
A. Coexistence of both public and private sectors