What is a characteristic of a planned economy?

All resources are allocated centrally.

What is an essential feature of a pure market economy?

Prices respond to the demands of consumers.

What is likely to be ta consequence of replacing central with a market-based system?

an increase in the level of unemployment

What is an advantage by producers and a disadvantage by consumers of a planned economy?

a government emphasis on the production of capital goods

What is the defining characteristic of a mixed economy?

in which resources are allocated by state and private sector

The term ‘transition economy’ is used to describe a country that is

moving from central planning towards the market system.

What is most likely to be a distinguishing feature of the healthcare system of a mixed economy?

a mixture of government-owned and privately owned hospitals

In a market economy, what is the basis for determining the allocation of factors of production?

the pattern of consumers’ spending

Moving from a planned towards a market economy brings a reduction in saving.Why?

increased availability of consumer goods

How is labour allocated in a market economy?

according to demand and supply in product markets

Which statement is the most valid reason for government intervention in a free market economy?

Health and education are insufficient.

A government is keen to take control of a company. What might be the possible result of this?

an increase in public ownership

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Economic systems

17 termsStudBud Administration369 plays

Economic systems

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Questions 17

Answers

1
What is a characteristic of a planned economy?
There is competition in most markets.
All property is owned privately.
All resources are allocated centrally.
Supply and demand always determine prices.
2
What is an essential feature of a pure market economy?
Prices respond to the demands of consumers.
External costs are taxed.
The government provides public goods.
Buyers and sellers have perfect knowledge.
3
What is likely to be ta consequence of replacing central with a market-based system?
a lower rate of return on capital investment
a more equal distribution of income and wealth
an increase in the level of unemployment
a decrease in the rate of inflation
4
What is an advantage by producers and a disadvantage by consumers of a planned economy?
a long response time to changing economic events
a government emphasis on the production of capital goods
a bureaucratic system of decision-making
an absence of financial incentives to work and to produce
5
What is the defining characteristic of a mixed economy?
which produces agriculture and industrial products
in which resources are allocated by state and private sector
in which there are economically developed economies
in which there are both monopolies and competitiion
6
What is likely to be greater in a planned economy than a market economy?
stability
efficiency
flexibility
innovation
7
What is present in a mixed economy but not in a planned economy?
government borrowing
private production
capital goods
consumer surplus
8
The term ‘transition economy’ is used to describe a country that is
adopting capital in place of labour-intensive methods.
moving from central planning towards the market system.
substituting manufacturing output for agricultural output.
replacing a trade deficit with a trade surplus.
9
What is most likely to be a distinguishing feature of the healthcare system of a mixed economy?
a mixture of foreign and domestically owned hospitals
a mixture of government-owned and privately owned hospitals
a mixture of specialist and general hospitals
a mixture of foreign and domestic medical staff
10
In a market economy, what is the basis for determining the allocation of factors of production?
the wealth of entrepreneurs
the pattern of consumers’ spending
the needs of the country
the market share of companies
11
In which types of economy might a government control prices?
market, mixed and planned
market and mixed only
mixed and planned only
market and planned only
12
Moving from a planned towards a market economy brings a reduction in saving.Why?
increased availability of consumer goods
an increase in income inequality
the introduction of charges for hospital treatment
an increase in job insecurity
13
Which change is likely to result in rise in unemployment and fall in economic regulation?
planned to mixed economy
mixed to planned economy
planned to market economy
market to mixed economy
14
In which aspect is the planned economy likely to offer more than the market economy?
security
competition
incentive
innovation
15
How is labour allocated in a market economy?
according to government micro and macroeconomic policies
according to government decisions
according to demand and supply in product markets
according to changes in government
16
Which statement is the most valid reason for government intervention in a free market economy?
Health and education are insufficient.
Producers are motivated by profit maximisation.
There are many firms and not enough sole suppliers.
It isdifficult for producers to make profits.
17
A government is keen to take control of a company. What might be the possible result of this?
an increase in public ownership
an increase in the amount of competition
an increase in the role of the consumer
an increase in the role of the market

Economic systems Flashcards | StudBud

Economic systems

17 termsStudBud Administration369 plays

Economic systems

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
What is a characteristic of a planned economy?
There is competition in most markets.
All property is owned privately.
All resources are allocated centrally.
Supply and demand always determine prices.
2
What is an essential feature of a pure market economy?
Prices respond to the demands of consumers.
External costs are taxed.
The government provides public goods.
Buyers and sellers have perfect knowledge.
3
What is likely to be ta consequence of replacing central with a market-based system?
a lower rate of return on capital investment
a more equal distribution of income and wealth
an increase in the level of unemployment
a decrease in the rate of inflation
4
What is an advantage by producers and a disadvantage by consumers of a planned economy?
a long response time to changing economic events
a government emphasis on the production of capital goods
a bureaucratic system of decision-making
an absence of financial incentives to work and to produce
5
What is the defining characteristic of a mixed economy?
which produces agriculture and industrial products
in which resources are allocated by state and private sector
in which there are economically developed economies
in which there are both monopolies and competitiion
6
What is likely to be greater in a planned economy than a market economy?
stability
efficiency
flexibility
innovation
7
What is present in a mixed economy but not in a planned economy?
government borrowing
private production
capital goods
consumer surplus
8
The term ‘transition economy’ is used to describe a country that is
adopting capital in place of labour-intensive methods.
moving from central planning towards the market system.
substituting manufacturing output for agricultural output.
replacing a trade deficit with a trade surplus.
9
What is most likely to be a distinguishing feature of the healthcare system of a mixed economy?
a mixture of foreign and domestically owned hospitals
a mixture of government-owned and privately owned hospitals
a mixture of specialist and general hospitals
a mixture of foreign and domestic medical staff
10
In a market economy, what is the basis for determining the allocation of factors of production?
the wealth of entrepreneurs
the pattern of consumers’ spending
the needs of the country
the market share of companies
11
In which types of economy might a government control prices?
market, mixed and planned
market and mixed only
mixed and planned only
market and planned only
12
Moving from a planned towards a market economy brings a reduction in saving.Why?
increased availability of consumer goods
an increase in income inequality
the introduction of charges for hospital treatment
an increase in job insecurity
13
Which change is likely to result in rise in unemployment and fall in economic regulation?
planned to mixed economy
mixed to planned economy
planned to market economy
market to mixed economy
14
In which aspect is the planned economy likely to offer more than the market economy?
security
competition
incentive
innovation
15
How is labour allocated in a market economy?
according to government micro and macroeconomic policies
according to government decisions
according to demand and supply in product markets
according to changes in government
16
Which statement is the most valid reason for government intervention in a free market economy?
Health and education are insufficient.
Producers are motivated by profit maximisation.
There are many firms and not enough sole suppliers.
It isdifficult for producers to make profits.
17
A government is keen to take control of a company. What might be the possible result of this?
an increase in public ownership
an increase in the amount of competition
an increase in the role of the consumer
an increase in the role of the market