681. What is the role of entrepreneurship in a market economy?
A) Entrepreneurship is discouraged in a market economy.
B) Entrepreneurs are appointed by the government.
C) Entrepreneurs identify opportunities and take risks to create businesses.
D) Entrepreneurs are not relevant in a market economy.
682. What is the invisible hand in a market economy?
A) Government regulations.
B) Charity and philanthropy.
C) The self-regulating nature of the market system.
D) Consumer preferences.
683. In a market economy, how are prices determined?
A) By government officials.
B) Through the interactions of buyers and sellers in the market.
C) Randomly.
D) Based on tradition.
684. What is the role of government in protecting consumers in a market economy?
A) To set prices for goods and services.
B) To ensure that businesses maximize profits.
C) To establish and enforce regulations to ensure product safety and fair competition.
D) Government has no role in protecting consumers.
685. How does a market economy handle environmental concerns?
A) Environmental concerns are ignored in a market economy.
B) Government decides on environmental policies.
C) Market forces and regulations address environmental concerns.
D) Consumers have no say in environmental issues.
686. What is the role of innovation in a market economy?
A) Innovation is discouraged.
B) Innovation is controlled by the government.
C) Innovation is encouraged and rewarded.
D) Innovation is irrelevant.
687. How are economic decisions made in a market economy?
A) Decisions are made by a central planning authority.
B) Decisions are made by businesses only.
C) Decisions are made by individuals and businesses responding to market signals.
D) Decisions are made by political leaders.
688. What is the role of prices in a market economy?
A) Prices are fixed by the government.
B) Prices act as signals to convey information about the scarcity of goods and services.
C) Prices have no role in a market economy.
D) Prices are determined by consumer preferences.
689. How does a market economy handle unemployment?
A) Government determines employment levels.
B) Employment levels are determined by market forces and business decisions.
C) There is no unemployment in a market economy.
D) Businesses are required to hire a certain number of employees.
690. What is the role of government in a market economy during economic downturns?
A) Government increases regulations.
B) Government intervenes to control prices.
C) Government may implement policies to stimulate economic activity.
D) Government does not play any role during downturns.
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