1. What is the central economic problem faced by all societies?
A. Choice
B. Scarcity
C. Opportunity Cost
D. Consumption
Answer Explanation: Scarcity refers to the limited nature of resources, which forces societies to make decisions on how to allocate them efficiently.
2. In a traditional economy, how are economic decisions typically made?
A. Based on government regulations
B. According to market demand
C. Guided by customs and traditions
D. Determined by central planning agencies
Answer Explanation: In a traditional economy, decisions are made based on long-standing customs and traditions passed down through generations.
3. Which economic system relies on supply and demand to determine production and distribution decisions?
A. Mixed Economy
B. Command Economy
C. Market Economy
D. Traditional Economy
Answer Explanation: A market economy uses the forces of supply and demand to determine production and distribution without direct government intervention.
4. What does the circular flow model represent in an economy?
A. The movement of money and resources between households and firms
B. The government's role in controlling economic activities
C. The balance between exports and imports
D. The distribution of wealth among different social classes
Answer Explanation: The circular flow model illustrates how money, goods, services, and resources circulate between households and firms in an economy.
5. In a command economy, who typically owns or controls key industries and resources?
A. Private individuals and firms
B. Government
C. International organizations
D. Local communities
Answer Explanation: In a command economy, the government has control over key industries and makes decisions regarding resource allocation.
6. What is the primary focus of economic planning agencies in a command economy?
A. Maximizing consumer satisfaction
B. Allocating resources according to market demand
C. Setting production targets and resource allocation
D. Promoting competition among firms
Answer Explanation: In a command economy, planning agencies set production targets and allocate resources to meet government-defined goals.
7. Which economic system combines elements of both market and command economies?
A. Mixed Economy
B. Traditional Economy
C. Command Economy
D. Market Economy
Answer Explanation: A mixed economy incorporates aspects of both market and command economies, with both private sector and government involvement in economic decisions.
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BSED Major in Social Studies 2
Non-FictionThese materials provide lecture notes, quizzes, and resources for BSED Social Studies students, covering key topics such as history, geography, economics, and political science. Marjhon Mascardo shares a personal note, reflecting on his college jour...
