Quiz - Economy, Mkt failure and Banks

In a private economy, who makes most of the economic decisions?

• Government

• Individuals and businesses

• Central Bank

• International organizations

What motivates businesses in a private economy?

• Profit

• Government policies

• Social welfare

• Taxes

Which of the following is a feature of a private economy?

• Government ownership of resources

• Market forces determine prices

• No private property

• State-controlled production

In a private economy, prices are determined by:

• Government

• Supply and demand

• Laws and regulations

• Public sector intervention

What is a major advantage of a private economy?

• High government control

• Efficiency and innovation

• No competition

• Fixed wages

In a public economy, who owns most resources?

• Private individuals

• Government

• Foreign investors

• Banks

What is a key feature of a public economy?

• Free market competition

• Government control over production

• Profit-driven businesses

• No taxation

In a public economy, how are prices usually set?

• Market competition

• Government planning

• Consumer demand

• Private companies

What is a common advantage of a public economy?

• Economic equality

• Unlimited private property

• No government regulation

• Rapid innovation

A public economy is also known as a:

• Free market economy

• Mixed economy

• Command economy

• Traditional economy