Economics MCQS

841. How does capitalism address the issue of competition?
A) Capitalism encourages competition among private individuals and businesses.
B) Competition is irrelevant in capitalism.
C) The government regulates and controls all forms of competition.
D) Capitalism discourages competition.

842. How are profits distributed in capitalism?
A) Profits are distributed to private individuals and businesses.
B) Profits are distributed equally among all members of society.
C) Profits are controlled and distributed by the government.
D) Profits are eliminated in capitalism.

843. What role does the government play in capitalism?
A) The government makes all decisions regarding resource allocation and production.
B) The government has a limited role, primarily focused on enforcing property rights and ensuring market competition.
C) The government controls and directs all economic activities.
D) The government is responsible for central planning in capitalism.

844. How does capitalism respond to consumer choices?
A) Capitalism provides a wide range of consumer choices based on market competition.
B) Consumer choices are irrelevant in capitalism.
C) Consumer choices are determined by the government.
D) Capitalism restricts consumer choices.

845. In capitalism, how is production planned?
A) Production is determined by private individuals and businesses responding to market demand.
B) Production is centrally planned by the government.
C) Production is irrelevant in capitalism.
D) Production is determined collectively by society.

846. How does capitalism address income inequality?
A) Income inequality may exist, but it is seen as a natural outcome of individual effort and ability.
B) Capitalism promotes income inequality.
C) Income inequality is eliminated in capitalism.
D) The government controls and distributes income in capitalism.

847. How does capitalism address unemployment?
A) Unemployment is addressed through market mechanisms and individual initiative.
B) Unemployment is irrelevant in capitalism.
C) The government is solely responsible for addressing unemployment.
D) Capitalism promotes permanent unemployment.

848. How does capitalism impact individual freedoms?
A) Capitalism promotes individual freedoms, especially in economic decision-making.
B) Capitalism eliminates individual freedoms.
C) Individual freedoms are irrelevant in capitalism.
D) The government controls and restricts individual freedoms in capitalism.

849. What is the primary motive of businesses in capitalism?
A) To maximize profits through competition.
B) To fulfill the production targets set by the government.
C) To minimize government intervention.
D) To promote individual freedoms.

850. How does capitalism respond to economic crises and recessions?
A) Capitalism relies on market-oriented policies and adjustments to address economic challenges.
B) Capitalism ignores economic crises.
C) The government is solely responsible for addressing economic fluctuations.
D) Capitalism promotes economic crises.