Economics MCQS

811. What is the primary advantage of a command economy?
A) It allows for a central and coordinated approach to resource allocation and economic planning.
B) It promotes individual freedoms.
C) It encourages competition and innovation.
D) It relies solely on market forces.


812. How does a command economy balance economic growth and environmental sustainability?
A) By prioritizing economic growth over environmental sustainability.
B) By implementing central planning that considers both economic growth and environmental conservation.
C) By ignoring environmental concerns.
D) By relying on private individuals to address environmental sustainability.


813. How does a command economy address the provision of public education and healthcare?
A) The government plays a significant role in providing public education and healthcare services.
B) Public education and healthcare are solely the responsibility of private individuals.
C) Public education and healthcare are determinedby market forces.
D) The government has no role in providing public education and healthcare.


814. How does a command economy impact the distribution of wealth?
A) It promotes an equal distribution of wealth.
B) It may result in a more equal distribution of wealth, but state control may also lead to disparities.
C) It encourages wealth concentration among the elite.
D) It has no impact on the distribution of wealth.


815. How does a command economy respond to external trade and globalization?
A) By embracing external trade and globalization without government intervention.
B) By regulating and controlling external trade to protect domestic industries.
C) By eliminating external trade and globalization.
D) By relying solely on market forces for international trade.


816. How does a command economy address the issue of economic efficiency?
A) By relying on market forces for efficient resource allocation.
B) By sacrificing some level of economic efficiency for central planning and control.
C) By ignoring the issue of economic efficiency.
D) By promoting competition among private enterprises.


817. What is the role of state-owned enterprises in a command economy?
A) State-owned enterprises have no role in a command economy.
B) State-owned enterprises play a significant role and are often major producers in key industries.
C) State-owned enterprises operate independently of government control.
D) State-owned enterprises are limited to small-scale industries.


818. How does a command economy address the issue of inflation?
A) By relying on market mechanisms to control inflation.
B) By implementing central planning and price controls to address inflation.
C) By ignoring the issue of inflation.
D) By promoting inflation through state intervention.


819. How does a command economy impact consumer choices?
A) It provides diverse consumer choices through competition.
B) It may limit consumer choices, and individuals often have fewer options.
C) It has no impact on consumer choices.
D) It encourages unlimited consumer choices.


820. What is the role of the central government in a command economy?
A) The central government has extensive control over economic planning, resource allocation, and major industries.
B) The central government has no role in a command economy.
C) The central government plays a minor role in guiding market forces.
D) The central government is limited to national defense.


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