Economics Practice Test – Economic System (Questions with Answers and Explanations)

Public ownership of productive factors is a feature of ______ (JAMB 2016)

A. socialism
B. capitalism
C. feudalism
D. mixed economy

An economy in which both the public and private sectors contribute to economic growth is known as ______ (JAMB 2013)

A. feudal economy
B. capitalist economy
C. social economy
D. mixed economy

In a free market economy, the price system allocates resources _____ (JAMB 2001)

A. under government’s directives
B. to ensure general welfare
C. to their best alternative uses
D. to reduce poverty.

A major disadvantage of a socialist economy is that ______ (JAMB 2012)

A. corruption is rampant
B. Consumers’ sovereignty is lost
C. Income inequality is entrenched
D. there is high level of unemployment.

An economy in which government makes all major production and distribution decisions is a ______ (JAMB 2015)

A. market economy
B. subsistence economy
C. feudal economy
D. planned economy