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Economic system - 4 - Planned economic sytem

Total questions: 13

Worksheet time: 17mins

Name
Class
Date
1.

An economic system involving the role of government is called...

a)

Market economic system

b)

Planned economic system

c)

Mixed-economic system

d)

Free market economic system

2.

Below is the disadvantage of a planned economic system

a)

Products quality are often poor

b)

Harmful goods might be produced

c)

Some firms may dominate the market

d)

Goods and services are produced to what is profitable

3.

Below is the advantage of a planned economic system

a)

Wide variety of products

b)

Development of new method of production

c)

More equal treat for hired labor

d)

Frequent innovation of goods and services

4.

Refuse collection and welfare service are examples of..

a)

Government monopoly program

b)

Government law and regulation

c)

Market failure condition

d)

Merit goods

5.

Below is an advantage of having government intervention in the economic system..

a)

Goods and services are allocated to people who can purchase it

b)

Environment and people are more protected from harmful goods

c)

No tax, which means more profit

d)

Consumer may gain better quality of products

6.

What are the use of laws and regulations?

Pick three options

a)

To protect consumer

b)

To protect employees

c)

To protect environment

d)

To protect goods and services

e)

To protect government's investors

7.

Which of the following is not the advantage of government intervention?

a)

The government may produce public goods

b)

The government may create more jobs opportunity

c)

The government may avoid or correct any market failure

d)

The government may produce better quality of goods and services

8.

Which of the following is not the nature (characteristic) of the mixed economic system?

a)

Creation of laws to make certain harmful goods illegal to stop its spreading

b)

Resource will only be employed if the profitable

c)

Laws and regulations to protect environment

d)

Provision of jobs, welfare payments for lower-income, and financial help to avoid bankruptcy

9.

How does the government's intervention create a disadvantage?

a)

The government often applies higher taxes that result in the deduction of labor's wages and increased market price

b)

The government often makes regulation to control harmful products, making a shortage of certain harmful products

c)

The government create public facility to provide support for the needy

d)

The government create regulation protecting the environment

10.

Write down two conditions of the market failure.

4 lines
11.

What we can understand if we notice an increase in prices?

4 lines
12.

Write three examples of merit goods.

4 lines
13.

Write down three disadvantages of the government's intervention.

4 lines