Economics MCQS

851. How does capitalism address social welfare?
A) Social welfare is often provided by private individuals and charitable organizations.
B) Social welfare is not a concern in capitalism.
C) The government provides all social welfare programs.
D) Social welfare is determined by market forces.

852. How does capitalism address the provision of public goods and services?
A) Capitalism relies on market mechanisms and private individuals for the provision of public goods and services.
B) The government is solely responsible for providing public goods and services.
C) Public goods and services are irrelevant in capitalism.
D) Public goods and services are determined by individual preferences.

853. How does capitalism impact the distribution of wealth?
A) Capitalism may result in unequal distribution, but it is seen as a consequence of individual effort.
B) Capitalism promotes an equal distribution of wealth.
C) The government controls and distributes wealth in capitalism.
D) Capitalism eliminates the distribution of wealth.

854. How does capitalism respond to external trade and globalization?
A) Capitalism embraces external trade and globalization without significant government intervention.
B) Capitalism regulates and controls external trade to protect domestic industries.
C) Capitalism eliminates external trade and globalization.
D) External trade and globalization are irrelevant in capitalism.

855. How does capitalism address the issue of economic efficiency?
A) Capitalism relies on market forces for efficient resource allocation and production.
B) Capitalism sacrifices efficiency for central planning and control.
C) Economic efficiency is irrelevant in capitalism.
D) Capitalism promotes competition among private enterprises for efficiency.

856. What is the role of state-owned enterprises in capitalism?
A) State-owned enterprises play a significant role in capitalism.
B) State-owned enterprises have a limited role, and private enterprises dominate the economy.
C) State-owned enterprises have no role in capitalism.
D) State-owned enterprises control all economic activities in capitalism.

857. How does capitalism address the issue of inflation?
A) Capitalism relies on market mechanisms to control inflation.
B) Capitalism eliminates inflation through government control.
C) Inflation is irrelevant in capitalism.
D) The government promotes inflation in capitalism.

858. How does capitalism impact consumer choices?
A) Capitalism provides diverse consumer choices through competition.
B) Consumer choices are irrelevant in capitalism.
C) The government determines consumer choices.
D) Capitalism restricts consumer choices.

859. What is the role of the central government in capitalism?
A) The central government has a limited role, primarily focused on enforcing property rights and ensuring market competition.
B) The central government controls all economic activities in capitalism.
C) The central government has no role in capitalism.
D) The central government is solely responsible for economic planning.

860. How does capitalism balance economic growth and environmental sustainability?
A) Capitalism often faces challenges in balancing economic growth and environmental sustainability.
B) Capitalism prioritizes environmental sustainability over economic growth.
C) Balancing economic growth and environmental sustainability is irrelevant in capitalism.
D) The government is solely responsible for addressing environmental concerns in capitalism.