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CA Foundation Basic Problems of an Economy and Role of Price Mechanism — practice questions
23 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Basic Problems of an Economy and Role of Price Mechanism in the app →The central economic problem that every economy must confront, irrespective of whether it is capitalist, sociaA resource gives rise to an economic problem only when it satisfies which pair of conditions?A government deciding how many schools, hospitals and metres of cloth the nation should turn out is essentiallThe decision of whether cotton cloth should be made on handlooms or on automatic looms primarily relates to whWhen a society settles how the total output of goods and services will be shared among its members, it is solvDevoting all current resources to consumption with no provision for saving and investment would most likely caThe sum total of arrangements for the production and distribution of goods and services in a society is best dAn economy in which the means of production are privately owned and the profit motive drives economic activityWhich of the following is NOT a characteristic of a capitalist or free-market economy?The idea that buyers, through their spending choices, ultimately decide which goods are produced and in what qIn a capitalist economy, if consumers' demand for cars rises while costs stay unchanged, the chain of events tWhen labour becomes relatively cheaper than capital, a profit-seeking entrepreneur in a capitalist economy is In a capitalist economy, the question 'for whom to produce' is settled mainly by an individual's:Which statement is listed in the unit as a DEMERIT, rather than a merit, of a capitalist economy?A socialist economy is also commonly described by which alternative name?Under a socialist economy, the prices that prevail are best described as:The concept of a socialist economy was first propounded in 'The Communist Manifesto' (1848) by:Which feature is characteristic of a socialist economy rather than a capitalist one?Consider a country where the state owns major industries for community welfare, private firms operate under reWhich sector of a mixed economy is set up by the State mainly for the welfare of the community rather than forAccording to the unit's summary, which tool does each economy use to solve its basic problems: capitalist, socA frequently cited risk of a mixed economy, if the government fails to act decisively, is that the:In a capitalist economy, an investor's decision on how much to invest is governed primarily by the: