1. An economic system is stabilized through a combination of:
b. planning and markets
2. The two dominant forms of coordination in the economic system are:
a. capitalist and socialist
3. In a pure market economy, the actor most likely to be absent from economic affairs is:
b. Government
4. In a socialist economic system, production is carried out to:
c. directly maximize the social welfare
5. An example of a socialist economy in the world is:
c. Cuba
6. The relationship between the quantity of a good/service consumers will purchase and the price charged is exemplified by:
a. Demand
7. The factor that does NOT determine change in quantity demanded is:
a. Consumer's income
8. When the demand of a good increases as consumer's income increases and falls as income falls, the good is termed to be a:
d. normal good
9. When demand exceeds supply, we experience:
c. shortage
These answers provide insights into economic systems, coordination forms, actors in market economies, production in socialist systems, examples of socialist economies, demand-price relationship, factors influencing quantity demanded, types of goods based on income changes, and the outcome of excess demand over supply.
