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BMTCN CHAPTERS TEST
BANK QUESTIONS AND ANSWERS
Which of the following is a distinguishing feature of a command
system?
A. private ownership of all capital.
B. central planning.
C. heavy reliance on markets.
D. wide-spread dispersion of economic power. - correct
answer- central planning.
Which of the following is a distinguishing feature of laissez-faire
capitalism?
A. public ownership of all capital.
B. central planning.
C. minimal government intervention.
D. a circular flow of goods, resources, and money. - correct
answer- minimal government intervention.
Examples of command economies are:
A. The United States and Japan.
B. Sweden and Norway.
C. Mexico and Brazil.
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D. Cuba and North Korea. - correct answer- Cuba and North
Korea.
An economic system:
A. requires a grouping of private markets linked to one another.
B. is a particular set of institutional arrangements and a
coordinating mechanism used to respond to the economizing
problem.
C. requires some sort of centralized authority (such as
government) to coordinate economic activity.
D. is a plan or scheme that allows a firm to make money at
some other firm's expense. - correct answer- is a particular set
of institutional arrangements and a coordinating mechanism
used to respond to the economizing problem.
The term "laissez-faire" suggests that:
A. land and other natural resources should be privately owned,
but capital should be publicly owned.
B. land and other natural resources should be publicly owned,
but capital should be privately owned.
C. government should not interfere with the operation of the
economy.
D. government action is necessary if the economy is to achieve
full employment and full production. - correct answer-
government should not interfere with the operation of the
economy.
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Economic systems differ according to which two main
characteristics?
A. Who owns the factors of production, and the methods used
to coordinate economic activity.
B. The technology used in production, and the quantity and
quality of natural resources.
C. How goods are produced, and who gets them.
D. The political system in place, and the degree of scarcity
facing the economy. - correct answer- Who owns the factors of
production, and the methods used to coordinate economic
activity.
Command systems are also known as:
A. market systems.
B. pure capitalism.
C. laissez-faire capitalism.
D. communism. - correct answer- communism.
A fundamental difference between the command system and
the laissez-faire capitalism is that, in command systems:
A. the division of output is decided by central planning rather
than by individuals operating freely through markets.
B. all economic decisions are made by the government,
whereas there is no government in a market system.
BMTCN CHAPTERS TEST
BANK QUESTIONS AND ANSWERS
Which of the following is a distinguishing feature of a command
system?
A. private ownership of all capital.
B. central planning.
C. heavy reliance on markets.
D. wide-spread dispersion of economic power. - correct
answer- central planning.
Which of the following is a distinguishing feature of laissez-faire
capitalism?
A. public ownership of all capital.
B. central planning.
C. minimal government intervention.
D. a circular flow of goods, resources, and money. - correct
answer- minimal government intervention.
Examples of command economies are:
A. The United States and Japan.
B. Sweden and Norway.
C. Mexico and Brazil.
,2 | Page
D. Cuba and North Korea. - correct answer- Cuba and North
Korea.
An economic system:
A. requires a grouping of private markets linked to one another.
B. is a particular set of institutional arrangements and a
coordinating mechanism used to respond to the economizing
problem.
C. requires some sort of centralized authority (such as
government) to coordinate economic activity.
D. is a plan or scheme that allows a firm to make money at
some other firm's expense. - correct answer- is a particular set
of institutional arrangements and a coordinating mechanism
used to respond to the economizing problem.
The term "laissez-faire" suggests that:
A. land and other natural resources should be privately owned,
but capital should be publicly owned.
B. land and other natural resources should be publicly owned,
but capital should be privately owned.
C. government should not interfere with the operation of the
economy.
D. government action is necessary if the economy is to achieve
full employment and full production. - correct answer-
government should not interfere with the operation of the
economy.
, 3 | Page
Economic systems differ according to which two main
characteristics?
A. Who owns the factors of production, and the methods used
to coordinate economic activity.
B. The technology used in production, and the quantity and
quality of natural resources.
C. How goods are produced, and who gets them.
D. The political system in place, and the degree of scarcity
facing the economy. - correct answer- Who owns the factors of
production, and the methods used to coordinate economic
activity.
Command systems are also known as:
A. market systems.
B. pure capitalism.
C. laissez-faire capitalism.
D. communism. - correct answer- communism.
A fundamental difference between the command system and
the laissez-faire capitalism is that, in command systems:
A. the division of output is decided by central planning rather
than by individuals operating freely through markets.
B. all economic decisions are made by the government,
whereas there is no government in a market system.
