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

A major characteristic of a mixed economy is that ______ (JAMB 2004)

A. economic decision is made by both the rich and the poor
B. economic activities are undertaken by both the public and private sectors
C. the federal and the state governments undertake joint projects
D. both primary and secondary production are undertaken.

The typical feature of a market economy is that ______ (JAMB 2018)

A. Private ownership of means of production
B. Public ownership of means of production
C. Welfare maximization
D. Profit maximisation

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 typical feature of a market economy is that ______ (JAMB 2019)

A. all producers make profit
B. full employment exists
C. consumer sovereignty exists
D. there is equality of economic agents

A typical feature of a market economy is that ______ (JAMB 2009)

A. all producers make profit
B. full employment exists
C. consumer sovereignty exists
D. there is equality of economic agents