BEC Topic 1

Which of the following is not the characteristics of a planned economy?

• Central planning authority

• Private ownership resources

• Public ownership of resources

• Advocacy of social justice

An increase in the production of a good can be accompanied only by ______________ along a PPC.

• Decreasing the production of another good

• Increasing the production of another good

• Holding constant the production of another good

• Producing at a point on the corner of the curve

In a palnned economic system, the questions of what, how and for whom to produce are solve by a(n) _________

• Planning committee or government

• Elected representative of people

• Price mechanism

• Action of producers

A mixed economy is an economy that _____

• Change from a pure free to pure planned economy

• Has elements of dictatorship

• Is a mixed of pure free and pure planned economy

• Has minimum government interventions

Which of the following is the characteristic of free market economy

• achieves an equal income distribution

• public ownership of resources

• price mechanism of lesser importance

• stimulates innovation

A movement along the PPC implies that

• labour force has increased

• productivity has increased

• society has chosen a different set of output

• improvement in technology know how

Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?

• Market economy

• Planned economy

• Mixed economy

• Islamic economy

What type of economy do most countries in the world have?

• Market economy

• Mixed economy

• Planned economy

• Islamic economy

Which of the following is NOT one of the three basic questions of economics when looking at economic systems?

• What goods should be produced ?

• What is the price of the goods?

• How should the goods be produced?

• Who gets to consume the goods?

What is the point inside the PPC

• Inefficient use of resources

• Efficient use of resources

• Limited resources