Indian Economy

Important Concepts in Micro & Macroeconomics

mcq test

Which type of economy has purely private ownership?

A. Socialist economy

B. Capitalist economy

C. Mixed economy

D. Traditional economy

MCQ -1

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B. Capitalist economy

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Who determines prices in a capitalist economy?

A. Government

B. Big corporates

C. Market forces

D. None of the above

MCQ -2

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C. Market forces

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Capitalist economic system is a feature of which of these countries?

A. USA

B. China

C. Russia

D. India

MCQ -3

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A. USA

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Which among the following is a guiding force for the capitalist economy?

A. Social service

B. Private property

C. Competition

D. Profit motive

MCQ -4

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D. Profit motive

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In which type of economy is government interference limited?

A. Socialist economy

B. Market economy

C. Mixed economy

D. None of the above

MCQ -5

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B. Market economy

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In which economy, consumer choice plays a key role in the functioning of the economy?

A. Capitalist economy

B. Mixed economy

C. Socialist economy

D. Both A and B

MCQ -6

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D. Both A and B

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Which of the following is a limitation of a free market?

A. Low taxes

B. Maximum consumer choices

C. Limited trade

D. Uneven distribution of resources

MCQ -7

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D. Uneven distribution of resources

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Which of the below statements is incorrect regarding the Market Economy?

A. Government doesn't control the factors of production

B. Government decides which goods to produce and how much

C. Consumers and producers' choice play a key role in the economy

D. The profit motive is the main reason for increased efficiency

MCQ -8

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B. Government decides which goods to produce and how much

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Which economy is based on state ownership of resources and factors of production?

A. Capitalist economy

B. Mixed economy

C. Socialist economy

D. None of the above

MCQ -9

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C. Socialist economy

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In which type of economy, competition doesn't exist in the market?

A. Mixed economy

B. Capitalist economy

C. Market economy

D. Socialist economy

MCQ -10

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D. Socialist economy

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