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NARAYAN CHANGDER
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Preface:
This book is primarily designed for students and teachers. This book contains more than 15348 ques-
tions from the core areas of ECONOMICS. The questions are grouped chapter-wise. There are total
15348+ MCQ with answers. This reference book provides a single source for multiple choice
questions and answers in ECONOMICS. It is intended for students as well as for developers and
researchers in the field. This book is highly useful for faculties and students. One can use this book
as a study guide, knowledge test questions bank, practice test kit, quiz book, trivia questions . . .
etc.

NARAYAN CHANGDER
The strategy used in this book is the same as that which mothers and grandmothers have been
using for ages to induce kids in the family to sip more soup (or some other nutritious drink). The
children are told that some cherries (their favourite noodles or cherries ) are hidden somewhere
in the bowl, and that serves as an incentive for drinking the soup. In joint families, by the time the
children are old enough to know the trick played by their grandma, there is usually another group
of kids ready to fall for it! They excite the kids, but the real nutrition lies not in the noodles but in
the soup. The problems given in this book are like those noodles/cherries while solving all these
problems are nutritious soup. Now it is your choice to drink the nutritious soups or not!!!.

The overwhelming response to the first edition of this book has inspired me to bring out this second
edition, which is a thoroughly revised and updated version of the first.

Every effort has been made to make this book error-free. I welcome all constructive criticism of
the book. I will upload more MCQ’s on ECONOMICS in quiz format. Keep visiting our website
https://www.gatecseit.in/.
This E-book is dedicated to the loving memory of my mother:
my guiding light, my shining star,
forever

It is my deepest gratitude and warmest

affection that I dedicate this Ebook.

To my mother JOYTSNA CHANGDER

who could not see this Ebook.

who has been a constant source of Knowledge and in-

spiration. Mom, Covid did not take you, it took our
many dreams. wherever you are we will meet again.
 Disclaimer

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ticate. The author bear no responsibil-
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 Contents

1 ECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1 Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 Cost Benefit Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
1.3 Division of Labor and Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
1.4 Economic Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
1.5 Economic Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
1.6 Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
1.7 Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
1.8 Opportunity Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
1.9 Productive Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
1.10 Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
1.11 Property Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
1.12 Scarcity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
1.13 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
1.14 Trade, Exchange and Interdependence . . . . . . . . . . . . . . . . . . . . . . . . . 371
1.15 Aggregate Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
1.16 Aggregate Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433
1.17 Budget Deficits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438
1.18 Public Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
1.19 Business Cycles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
1.20 Economic Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471
1.21 Fiscal Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503
1.22 GDP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548
1.23 Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577
1.24 Monetary Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
 1

1.25 Federal Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634

1.26 Real vs. Nominal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 664
1.27 Competition and Market Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665
1.28 Consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717
1.29 Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736
1.30 Elasticity of Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799
1.31 Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826

NARAYAN CHANGDER
1.32 Income Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 883
1.33 Market Failures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887
1.34 Markets and Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 907
1.35 Price Ceilings and Floors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916
1.36 Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 921
1.37 Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 921
1.38 Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 930
1.39 Balance of Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 956
1.40 Balance of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 959
1.41 Barriers to Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 978
1.42 Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 998
1.43 Foreign Currency Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1040
1.44 Compound Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1056
1.45 Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1099
1.46 Financial Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1132
1.47 Human Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1178
1.48 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1197
1.49 Money Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1216
1.50 Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1261
1.51 Risk and Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1312
1.52 Saving and Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1325
 1. ECONOMICS

NARAYAN CHANGDER
1.1 Decision Making
1. Using the facts and figures in front of you (A) Define your needs and wants
to make decisions is known as? (B) Analyze your personal resources
(A) Reasoning.
(C) Identify your career choices
(B) Intuition.
(D) Research your career choices
(C) Critical thinking.
(D) none of above 5. What will short-term and intermediate
2. A Goal should be goals help you achieve?
(A) Important to you (A) Money
(B) important to your friends (B) Popularity
(C) Short (C) Long-term goals
(D) important to your kids (D) none of above
3. What does His Highness say about risks in
his life? 6. The final step of decision-making
(A) Lower the risks, the easier th decision (A) taking personal responsibility
(B) weigh the consequences
(B) We nee dot avoid taking decisions as (C) deciding and acting
much as possible
(D) evaluating your decision
(C) Higher the risks, the greater th re-
ward
7. Where can a car buyer find the value of a
(D) The implementation of plans lead to particular model?
greater risks
(A) Kelley Blue Book (KBB)
4. Which step of the Decision Making Process (B) Underwriter’s Laboratories (UL)
is the following:Your personal resources
are who you are and what you have to (C) Better Business Bureau (BBB)
offer an employer. (D) American Auto Association (AAA)

1. A 2. A 3. C 4. B 5. C 6. D 7. A 8. B
4 Chapter 1. ECONOMICS

8. Decision-making strategy in which you go 14. The first step in the decision-making pro-
with your first reaction cess is to:
(A) Escape (A) Gather and examine information
(B) Impulse (B) List your resources and think about al-
(C) Agony ternatives
(D) none of above (C) Identify the decision to be made or
the problem to be solved
9. Which is not part of the decision making (D) Evaluate the consequences
process?
(A) Put a decision into action 15. What are the decisions necessary to put
(B) Consider all the alternatives before policy decisions into action
you decide (A) Major decisions
(C) Analyze the results of a decision (B) Operating decisions
(D) Postpone making the Decision (C) Routine decisions
(D) Strategic decisions
10. Decision-making is focused on choosing
among alternatives. What is problem- 16. problems are usually of the following
solving focused on? type(s):
(A) following guidelines (A) crisis problems.
(B) generating alternatives (B) routine problems.
(C) critical thinking (C) problems of failing to take advantage
(D) creating solutions of opportunities.
(D) all of the above.
11. h step?
(A) Act on your choice 17. Which professional does not provide
(B) Define the problem hands-on medical care?
(C) Choose one (A) firefighter
(D) Identify choices (B) 911 operator
(C) emergency medical technician
12. Something you desire but is not necessary
(D) emergency room nurse
that has an influence on your decision mak-
ing? 18. What is the major driving force of any un-
(A) Plan dertaking, according to His Highness?
(B) Career (A) Resilience
(C) Need (B) Hard work
(D) Want (C) Sleep
13. Stress is (D) Teamwork
(A) Physical, mental, or emotional strain 19. Which is an example of an everyday deci-
or tension sion
(B) Only physical strain or tension (A) choosing a car
(C) Only emotional strain or tension (B) figuring out how to resolve a conflict
(D) Only mental strain or tension with a friend

9. D 10. B 11. C 12. D 13. A 14. C 15. B 16. D 17. B 18. D 19. C 20. B
1.1 Decision Making 5

(C) deciding whether or not to have
dessert
(D) considering whether or not you
should buy a new computer
20. The danger in setting your goals too low
is that you may
(A) be tempted to give up on yourself
25. Which decisions can negatively impact a fi-
nancial goal?
(A) impulse decisions
(B) critical-thinking decisions
(C) problem-solving decisions
(D) informed decisions
26. All of the following are considered as hu-

NARAYAN CHANGDER
(B) never reach your full potential man element except
(C) become lazy (A) Emotions
(D) none of above (B) Peer Pressure
(C) Prejudices
21. Step 1 in the decision making process (D) None of the above
(A) List your choices
(B) Identify your problem 27. Choose the word that best completes the
sentence below. A usually requires a
(C) Make a choice lot of time and planning to accomplish.
(D) none of above (A) goal setting
22. Which of the following is a ‘Tactical’ deci- (B) goal
sion? (C) long-term goal
(A) Diversify product offering over the (D) mid-term goal
next 10 years
28. Put the steps in the Decision Making Pro-
(B) Decide on appropriate premises for cess in order. What is Step #1?
new stores to be opened
(A) Choose One
(C) Close stores in EU after Brexit
(B) Evaluate Choices
(D) none of above
(C) Define the Problem
23. What is one type of influence that we DO (D) Act on your Choice
NOT really have control over?
29. The beliefs that guide the way a person
(A) peer influence lives.
(B) curiosity (A) Values
(C) heredity (B) Decision
(D) siblings (C) Character
(D) Role Model
24. Which one of the following is NOT a HU-
MAN resource you can use to make good 30. Things I can do regarding the problem.
decisions? What step is this considered
(A) energy (A) Step 4
(B) talents (B) Step 1
(C) money (C) Step 3
(D) knowledge (D) Step 7

21. B 22. B 23. C 24. C 25. A 26. D 27. C 28. C 29. A 30. C 31. A
6 Chapter 1. ECONOMICS
31. What is an example of a long-term goal if
you’re in middle school now?
(A) getting into a great college program
(B) something that you would dream of
accomplishing in the future
(C) passing your biology class with a B+
or better
(D) something that you can achieve in the
near future
32. This decision making value has to do with
the maintenance of human communities
and their values and traditions
(A) ethical/moral
(B) educational
(C) recreational
(D) social/cultural
33. step process leading to the selection of
a course of action among several alterna-
tives
(A) Decision
(B) Decision Making Process
(C) Planning Process
(D) Verdict
34. An unwillingness to give up something
now in return for something later.
(A) Agony
(B) Delayed Gratification
(C) Instant Gratification
(D) none of above
35. Which of these is NOT an example of a
need?
(A) Water
(B) Food
(C) Cell phone
(D) Shelter
36. Allison would like to bake a cake but re-
alized she is out of milk. Which of the
following stages of the consumer decision
making process is this an example of?
32. D 33. B 34. C 35. C 36. A
(A) Need identification
(B) Information searching
(C) Alternative evaluation
(D) Purchase decision
37. A good example of impulsive decision-
making is purchasing a car:
(A) without adequately finding alterna-
tives
(B) after thinking for one year.
(C) based on a friend’s opinion
(D) based on consumer reviews.
38. Outcome
(A) Result of a decision
(B) Result of a consequence
(C) Result of an option
(D) Result of an alternative
39. An attainable goal is one that can be
(A) realistically reached
(B) evaluated
(C) measured
(D) none of above
40. Decision making is simply described as
which of the following
(A) Deciding what is correct
(B) Putting preferences on paper
(C) Choosing among alternatives
(D) Processing informafor completion
41. Kelly needs to buy a car. She stops at
a dealership and immediately spots a nice
red car. “That’s my new car!” she shouts.
What type of decision did Kelly make?
(A) default decision
(B) impulse decision
(C) resistance decision
(D) planned decision
37. A 38. B 39. A 40. C 41. B 42. B
1.1 Decision Making 7

42. The Johnstons family hair company op- 47. The state of being happy, healthy and
erating profits have been decreasing for prosperous is your
years and finally they found out it’s be- (A) Value
cause of Low revenues.What was first (B) Needs
step they took before making their deci-
(C) Well-being
sion?
(D) Wants
(A) Search process
(B) Problem recognition 48. Which are parts of communication?

NARAYAN CHANGDER
(C) Problem solving (A) Sender
(D) Selection stage (B) Reciever
(C) The Message
43. The limbic system in the brain controls (D) All of these
your
49. Paul made taking care of his younger
(A) Thoughts
brother a(n) and rescheduled spending
(B) Vision time with friends so he could play ball with
(C) Balance him.
(D) Emotions (A) Proactive
(B) Attitude
44. Which of the following is considered most (C) Priority
important as ranked by top managers?
(D) Trade-off
(A) Planning
(B) Organising 50. A downside of using decision trees in busi-
ness decision-making is that:
(C) Leading
(A) Decision tree ignores the cost of the
(D) Controlling decision
(B) Decision trees are hard to calculate
45. Which of the following NOT a part of crit-
ical thinking? (C) A decision tree takes no account of
risk
(A) Consider logical connections between
ideas (D) Assignment of expected values &
probabilities is prone to bias
(B) Consider every possible option
(C) Delay making a decision 51. What is it call when you put things or de-
cisions in order things from first to last or
(D) Identify relevance
from most important to least important.
46. The process by which individuals organize (A) Management
and interpret their sensory impressions in (B) Trade-Off
order to give meaning to their environ- (C) Procrastinate
ment is called? (D) Prioritize
(A) Attribution
52. Spending money on items that are seen as
(B) Perception trendy or expensive can project a certain
(C) Sensation image but
(D) Consciousness (A) can lead to unwanted debt.

43. D 44. A 45. C 46. B 47. C 48. D 49. C 50. D 51. D 52. A 53. C
8 Chapter 1. ECONOMICS

(B) can break your budget. 58. Which of the following is planned by mid-
(C) is always a bad idea. dle managers?
(D) can make people jealous. (A) Mission statement
(B) Strategic goals and plans
53. Eustress is what kind of stress? (C) Tactical goals and plans
(A) Neutral (D) Operational goals and plan
(B) Offensive 59. When you make a decision, you have to
(C) Positive “give up” other options. This is called:
(D) Negative (A) compromise
(B) trade-off
54. When you make choices that are true to
(C) unfair
your ethical and core values.
(D) switching
(A) Integrity
(B) Character 60. Decision-making strategy in which you
hand over control or let someone else de-
(C) Values
cide
(D) Decision (A) Trade-Off
55. If you are having trouble making up your (B) Compliance
mind, you can always (C) Escape
(A) carry out a random decision anyways. (D) none of above

61. Decision-making strategy in which you

(B) ignore your gut feeling. consider every detail of every option over
(C) ask for advice. and over again
(D) determine your short-and long-term (A) Delayed Gratification
goals. (B) Play it Safe
(C) Agony
56. Once you know what your choices are, (D) none of above
you need to find out as much as you can
about each option so you can make 62. Why is group decision a disadvantage?
(A) Any decision (A) Ambiguous responsibility
(B) A good decision (B) Group quarrels and conflicts might oc-
cur
(C) The right decision
(C) Some of the group members might
(D) An informed decision
not take it seriously
57. A student who is trying to decide which (D) All of the above
career to choose is making which kind of
63. Your should always support your
decision?
(A) Minor (A) good decisions, realistic goals
(B) Routine (B) prime decisions, realistic goals
(C) Major (C) good decisions, prime goals
(D) Regular (D) prime decisions, prime goals

54. A 55. D 56. D 57. C 58. C 59. B 60. B 61. C 62. A 63. D 64. A
1.1 Decision Making 9

64. What management style means that all 70. Resources available to residents of an
decisions are made centrally? area:
(A) Authoritarian (A) nonhuman resources
(B) Laissez-faire (B) community resources
(C) Bureaucratic (C) human resources
(D) Democratic (D) chain decision

71. The first step of decision making is

65. Reorganizing your closet is an example of

NARAYAN CHANGDER
a(n) (A) List your options
(B) Outline the consequences
(A) Short term
(C) Identify the problem
(B) Consequences
(D) Make the decision
(C) Goals
(D) Attitude 72. What you give up when you choose one
alternative over another. The alternative
66. When solving a problem, you should do you don’t choose.
which of the following? (A) Trade-Off
(A) Keep your values and goals in mind (B) Opportunity Cost
(B) Ignore your friends’ advice (C) Instant Gratification
(C) Follow your friends’ advice (D) none of above
(D) Keep your option to a minimum 73. Generally, what time period are strategic
decisions made for?
67. goals are ones you want to achieve in
one to five years. (A) +5 years
(B) 12 monthsDaily
(A) Short-term
(C) 12 months
(B) Intermediate
(D) none of above
(C) Long-term
(D) none of above 74. What are the four principles (pillars) of
democracy?
68. Decision-making strategy in which you (A) Freedom, Equity, Equality, Justice
choose the alternative with the lowest (B) Freedom, Equality, Representation,
level of risk Justice
(A) Play it Safe (C) Freedom, Equity, Representation,
(B) Escape Justice
(C) Trade Off (D) Freedom, Equity, Representation,
Equality
(D) none of above
75. What is stress?
69. What can stress cause?
(A) The body’s reaction to any physical,
(A) Heart issues mental, or emotional change
(B) Mental health issues (B) The body producing white blood cells
(C) Stomach issues (C) A disagreement or argument
(D) All of the above (D) A type of compromise

65. A 66. A 67. B 68. A 69. D 70. B 71. C 72. A 73. A 74. C 75. A 76. A
10 Chapter 1. ECONOMICS

76. A group whose members are bought to- 82. Deciding where to open a new restaurant
gether as a problem-solving team would be considered a
(A) Synectics (A) Programmed decision
(B) Nominal Grouping (B) Non programmed decision
(C) Brainstorming (C) Major decision
(D) none of above (D) Routine decision
77. Refers to a one-time random human error 83. A person can judge the success of a deci-
(A) Effectual Problem sion by asking:
(B) Deviation (A) did the decision help me meet my
(C) Causal Problem goal?
(D) none of above (B) am I making any money?
(C) did I follow all the steps in the pro-
78. Generally, what time period are opera- cess correctly?
tional decisions made for? (D) am I using all of my skills and train-
(A) Daily ing?
(B) 12 months
84. How many steps are in the decision mak-
(C) +10 years
ing process?
(D) none of above
(A) Eight
79. In the Blake Mouton Managerial Grid, (B) Seven
what name is given to a leadership style (C) Six
with low concern for people and low con- (D) Five
cern for performance?
(A) Country club 85. All the following are components of the
(B) Impoverished management decision-making process except:
(C) Middle of the road (A) implementing the decision
(D) Team management (B) cost-budget analysis
(C) selecting the best alternative
80. Ethical factors can affect consumer (D) identifying limiting factors
decision-making, .Which of the following
is not an ethical factor: 86. Consumers purchase goods and services
(A) sustainable use of resources (A) to satisfy their basic needs and wants
(B) cheapest price
(C) animal welfare (B) to keep up with social trends
(D) recycling (C) because businesses use marketing to
make them
81. What is the amount of income remaining (D) to keep the economy afloat
after all bills and obligations are paid that
can be used to purchase goods and ser- 87. When making decisions, a person should
vices? try to avoid which of the following?
(A) luxury spending (A) Getting help from a colleague
(B) overconsumption (B) Listening to impulses
(C) variable expenses (C) Making diagrams
(D) discretionary income (D) Identifying relevance

77. B 78. A 79. B 80. B 81. D 82. B 83. A 84. B 85. B 86. A 87. B 88. A
1.1 Decision Making 11

88. A decision to cut many jobs as part of a (B) The stronger the people
cost-reduction strategy is most likely to be (C) The sadder the citizens
opposed by which stakeholder groups? (D) The greater the economy
(A) Employees & the local community
94. What is the problem within your business.
(B) Directors & customers
What step is this considered?
(C) Shareholders & management (A) Step 2
(D) Suppliers & customers (B) Step 7

NARAYAN CHANGDER
89. After finally making the decsions what (C) Step 1
should we do? (D) Step 5
(A) Anonunce it publicly right away. 95. Anger can make you have
(B) Sleep on it and then anounce it. (A) Negative body language
(C) Ask for the opinions and inputs of (B) Positive body language
those around us. (C) Good moods
(D) none of above (D) All of the above
90. What is the final step according to the 96. The root cause for a student spending
same model? more than she has is that she
(A) Listing Possible Solutions/Options (A) occasionally makes impulse buys.
(B) Making the Decision (B) purchases things online.
(C) Weighing up the Pros and Cons (C) does not keep track of her spending.
(D) Evaluate the Decision (D) has no emergency fund.
97. Decide on strategy and course of action,
91. You envision yourself in the future and
lets get it done. What step is this consid-
how various options to your problem play
ered?
out. What are you doing?
(A) Step 6
(A) asking for advice
(B) Step 1
(B) making a mental movie prior to mak-
(C) Step 4
ing a decision
(D) Step 5
(C) giving the decision time
(D) going with your gut feeling 98. (U1C4L1:Q6)What will short-term and in-
termediate goals help you achieve?
92. What does making the right decisions in (A) Money
life call for/require? (B) Popularity
(A) It calls for willpower and a quick re- (C) Long-term goals
sponse
(D) none of above
(B) It calls for self respect and determi-
nation 99. Decisions can be broken up into 3 cate-
(C) It calls for confidence and loyalty gories. Which of the following is NOT one
of the categories
(D) It calls for punctuality and honesty
(A) Major decision
93. Complete the phrase:‘The stronger the pil- (B) Moral decision
lar ?’ (C) Manageable decisions
(A) The happier the community (D) Minor decision

89. B 90. D 91. B 92. A 93. B 94. C 95. A 96. C 97. A 98. C 99. C
12 Chapter 1. ECONOMICS

100. Cultural factors refer to the set of values, 106. Good decision should be
behaviours and ideals that are shared by (A) I-based on a complete investigation
a group of people . Which of the following of the root causes and potential problems;
is not an example: as well as the obvious symptoms.
(A) nation
(B) II-should encompass an effective
(B) religion strategy for an implementing the solution
(C) location
(D) trends (C) Both I & II
101. Which of the following is NOT a renter’s (D) Neither I & II
right?
(A) Having a safe environment 107. The decision making style, which consist
(B) Having privacy of organisational goal, predictive alterna-
(C) Not paying the rent in case of emer- tives and communication goals are called
gency (A) Organisation
(D) Having a healthy environment (B) Planning
102. Choose the word that best completes the (C) alternation
sentence below. A often does not need (D) Valuing
much planning or effort.
(A) short-term goal 108. A comprehensive decision-making model
(B) goal includes key steps to follow. Which step
(C) long-term goal is first?
(D) mid-term goal (A) Define your goal.
103. This decision making value has to do with (B) State the decision to be made.
the gain or loss of money or jobs (C) Evaluate your choices.
(A) moral (D) Make your decision.
(B) environmental
(C) economic 109. Almost always, decisions are de-
(D) educational cisions.
(A) fast, good
104. Myra was not able to achieve her of
getting a 4.0 grade point average because (B) realistic, good
she got a B-in history. (C) fast, bad
(A) goal (D) quick, realistic
(B) decission
(C) attitude 110. Gary’s positive about learning to
(D) priorities play the piano helped him learn to play
“Happy Birthday” after just two lessons.
105. What is anger?
(A) Goals
(A) A feeling of annoyance
(B) A feeling of joy (B) Priority
(C) A feeling of sadness (C) Attitude
(D) A feeling of happiness (D) Proactive

100. D 101. C 102. A 103. C 104. A 105. A 106. C 107. B 108. A 109. C 110. C
111. C
1.1 Decision Making 13

111. Which of the following is NOT a part of (C) Trade off

the critical thinking? (D) Attitude
(A) consider logical connections between
ideas 117. A sales director makes and announces a
(B) consider every possible option decision to cut his sales team’s commis-
sion. How would this leadership style be
(C) delay making a decision
categorised using the Tannenbaum Schmidt
(D) identify relevance Continuum?

NARAYAN CHANGDER
112. Which of the following is not a character- (A) Tell
istic of System 1 thinking? (B) Sell
(A) It is dependent on context-that is, en- (C) Consult
vironmental cues-to solve the problem.
(D) Delegate
(B) Is able to transfer information from
one situation to another. 118. (U1C4L1:V1)An attainable goal is one
(C) Requires little effort. that can be
(D) Results in creating impressions. (A) realistically reached

113. exist whenever there is a difference (B) evaluated

between what actually happens and what (C) measured
the manager wants to have happen. (D) none of above
(A) Decision
119. Decision Making
(B) Problem
(C) Programmed decision (A) Consequence
(D) Risk (B) Theprocess of arriving at a conclusion
or solution, or making a choice
114. This decision making value has to do with (C) Describing an alternative
what is right or wrong
(D) none of above
(A) ethical/moral
(B) social/cultural 120. Which term describes the ability to use
(C) health different types of reasoning for different
(D) recreational situations and analyze the possible out-
comes of a decision?
115. Don’t change your once you make up (A) goal setting
your mind.
(B) planning
(A) say
(C) decision making
(B) minds
(D) critical thinking
(C) thought
(D) thoughts 121. (U1C4L1:V3)You evaluate or to de-
termine the value of something.
116. A(n) is when you postpone or give up
doing something in order to do something (A) analyze
else. (B) criticize
(A) Consequence (C) assess
(B) goal (D) none of above

112. B 113. B 114. A 115. B 116. C 117. A 118. A 119. B 120. D 121. C 122. C
14 Chapter 1. ECONOMICS

122. Per the lesson, which goal takes time, 128. Compliance is a decision making strategy
planning, and dedication. Hint page 237. in which a person
(A) Short (A) Let someone else make the decision
(B) Intermediate (B) Consider every possible option
(C) Long (C) Delay making a decision
(D) none of above
(D) Pick the option with the lowest level
123. Which is not a characteristic of a realistic of risk
goal?
129. The last step in the decision-making pro-
(A) challenging
cess is:
(B) specific
(A) Decide
(C) well thought out
(D) easy (B) Act
(C) Evaluate
124. Which of the following refers specifically
(D) Examine Options
to leadership rather than management?
(A) Making tactical and operational deci- 130. are decision made in routine, repet-
sions itive, well-structured situations through
(B) Authority comes with position rather the use of predetermined decision rules.
than action (A) Programmed decisions
(C) Motivating and inspiring others
(B) Non-programmed decisions
(D) Instructing and coordinating subordi-
nates (C) Decision making
(D) Complicated decision
125. Nonhuman resources do NOT include?
(A) money 131. Morris showed when he admitted to
(B) possessions his grandmother that he knocked over and
(C) health broke the figurine on the coffee table. He
offered to buy her a new one.
(D) time
(A) integrety
126. a choice that you make about a situation (B) goals
in your life
(C) attitude
(A) left brain
(B) decision (D) consequences
(C) perspective 132. Which of the following questions mea-
(D) decision making model sures a person’s activity?
127. Which of the following stages in the fam- (A) Do you agree the U.S. medical system
ily life cycle does a family typically down- needs reform?
size their house? (B) How important is it to you to try new
(A) Newlywed food?
(B) Early parenthood (C) How often do you visit shopping
(C) Late parenthood malls?
(D) Retirement (D) Do you enjoy reading?

123. D 124. C 125. C 126. B 127. D 128. A 129. C 130. A 131. A 132. C 133. A
1.1 Decision Making 15

133. Which one of these definitions best de- 138. What is a temporary decision you make
scribe Opportunity Costs? with only the information you have at the
(A) The cost of making one decision over moment?
another. (A) Tentative
(B) The cost for the opportunity to buy (B) Conflict
anything you want. (C) Compromise
(C) The opportunity that will cost you (D) Procrastination
loads of money.

NARAYAN CHANGDER
(D) none of above 139. What is an emergency fund?
(A) an investment
134. When do scientists believe the brain fully
(B) to pay for your school supplies.
develops
(C) a financial safety net for future
(A) In the teens
mishaps and/or unexpected expenses
(B) In the 20s
(D) when you want to buy an expensive
(C) In the 30s gift
(D) Never
140. Major Decision includes all of the follow-
135. Why should you take responsibility for ing but
your decisions? (A) buying a car
(A) You will get credit when you make a (B) what to do after high school
good decision
(C) what I should put on my toast
(B) Admitting that you made a mistake
shows strength of character, or integrity (D) what career I should pursue

141. Values are

(C) People do not respect you if you (A) the way a person thinks, feels, and
blame others for your mistakes. acts.
(D) All of the above (B) beliefs or things you find important
136. Which of these is an example of data is (C) the same for everyone
playing an increasingly important role in (D) the result of a decision
marketing decision-making?
(A) Online aptitude tests for job appli- 142. An example of a human resource is:
cants (A) money
(B) Automated inventory management (B) clothes
systems (C) tools
(C) Dynamic pricing (D) experience
(D) Digital production capacity allocation
143. Decisions that are grouped according to
137. Generally, what time period are ‘tactical’ the relationships between the decisions
decisions made for? are?
(A) +10 years (A) central-satellite and chain
(B) 12 months (B) chain and habitual
(C) Hourly (C) rational and impulse
(D) Every second (D) impulse and habitual

134. B 135. D 136. C 137. B 138. A 139. C 140. C 141. B 142. D 143. A 144. A
16 Chapter 1. ECONOMICS

144. d step? (C) Employees and inexperienced and

(A) Evaluate choices need greater training
(B) Define the problem (D) Employees are threatening industrial
(C) Act on your choice action
(D) Choose one 150. A Goal should have
145. Like all mental disciplines, (A) Pretty flowers
requires following certain guidelines and (B) Big Words
principle.
(C) A Timeline
(A) thorough decision making
(D) small words
(B) smart decision making
(C) accurate decision making 151. When making a decision what is the
(D) effective decision making MOST important influence factor to con-
sider?
146. This decision making value has to do with (A) The feelings of others
the accumulation or sharing of knowledge
(B) Your Likes & Dislikes
(A) economic
(C) Your Ethics & Values
(B) moral
(D) Values & Ethics of others
(C) aesthetic
(D) educational 152. Which of the following does NOT affect
when people make a purchase?
147. What is the first step of making effective
decisions according to the model? (A) Time pressure
(A) Weighing up the Risks Involved (B) Discount sales
(B) Deciding on Values. (C) Certain holidays
(C) Listing Possible Solutions/Options (D) Store atmosphere
(D) none of above
153. (U1C4L1:Q2) is the last step of
148. Giving up one thing such as buying a the decision-making/problem-solving pro-
present for a friend and instead buying cess.
new shoes is an example of what. (A) Weighing your options
(A) Ethics (B) Making your decision and taking ac-
(B) Trade Off tion
(C) Standards (C) Implementing the plan
(D) none of above (D) none of above
149. In which situation is an effective man- 154. is the process of taking corrective ac-
ager most likely to use a laissez-faire man- tion in order to meet objectives.
agement style?
(A) Problem solving
(A) Employees are highly-skilled and mo-
tivated (B) Synergy
(B) Employees are being made redundant (C) Programmed decision
(D) Non-programmed decision

145. B 146. D 147. C 148. B 149. A 150. C 151. C 152. D 153. C 154. A 155. D
1.1 Decision Making 17

155. One of the most influential factors on (B) Simple decision

teenager’s decsions are: (C) Routine Decision
(A) their teachers (D) none of above
(B) their sports
161. Which of the following is NOT a decision
(C) their homework making process?
(D) their peers (A) Developing alternatives
156. According to which theory is it that when (B) Implementing the alternative

NARAYAN CHANGDER
individuals observe behaviour, they at- (C) Evaluating the alternative
tempt to determine whether it is internally (D) Selecting an alternative
or externally caused?
162. What is Intuitive decision making
(A) Attribution theory model?
(B) Selective perception theory (A) making decision on the basis of expe-
(C) Bounded rationality theory rience only
(D) Utilitarianism theory (B) making decision on the basis of feel-
ings only
157. This decision making value has to do with (C) making decision on the basis of expe-
understanding the natural world rience and feelings
(A) aesthetic (D) making decision on the basis of ex-
(B) scientific perience, feelings and accumulated judge-
(C) recreational ment
(D) health 163. What do you call when you put off decid-
ing or doing something?
158. Which of these is the best description of
the concept of “opportunity cost”? (A) Procrastinate
(B) Consequence
(A) The intangible cost of taking a deci-
sion (C) Opportunity Cost
(B) The variable cost of a decision (D) Prioritize
(C) The cost of not taking a decision 164. You are a high school freshman and have
(D) The cost of missing out on the next the desire to get accepted to a top-rated
best alternative university. What type of goal is this?
(A) short-term goal
159. Which of the following is an ‘Opera- (B) mid-term goal
tional’ decision?
(C) long-term goal
(A) Sack the entire Marketing depart- (D) none of above
ment
(B) Refill water fountain in the staff room 165. Decision-making strategy in which you
delay making the decision until someone
(C) Introduce a new line of products else makes the decision or until options dis-
appear; deciding “by default”
(D) none of above
(A) Agony
160. What to wear in the morning is an exam- (B) Opportunity Cost
ple of a (C) Procrastination
(A) Major decision (D) none of above

156. A 157. B 158. D 159. B 160. C 161. C 162. D 163. A 164. C 165. C
18 Chapter 1. ECONOMICS

166. The concept of opportunity cost is par-
ticularly relevant to business decision-
making when:
(A) The business has almost unlimited re-
sources
(B) Resources available to the business
are scarce
(C) The business is profitable
(D) The business is loss-making
167. Made on a daily basis and it doesn’t re-
quire a lot of time to think through
(A) habitual decision
(B) trade-off
(C) well-being
(D) values
168. An autocratic leader:
(A) Makes all the decisions and workers
have to carry them out
(B) Allows workers to make all the deci-
sions
(C) Discusses decisions with workers
and gives them an input
(D) Delegates the decision making pro-
cess to others in the business
169. In decision-making, determine needs, an-
alyze personal resources, and then:
(A) consider choices
(B) gather information
(C) Make a decision
(D) act on the decision
170. What is the first step of planning?
(A) Identify available resources
(B) Identify goals
(C) Create a team with likeminded people
(D) Have a chat with your parents
171. Democratic leadership places emphasis
on:
(A) Target setting and monitoring
(B) Delegation and consultation
(C) Rules and regulations
(D) Long-term decision-making
172. Which of the following is NOT an impor-
tant factor on decision making?
(A) Family
(B) Stress
(C) Environment
(D) Time
173. Why should you decide on your values
when making a decision?
(A) Because we all hold similar values.
(B) Because we all have our unique set of
values.
(C) Beacuse other people’s opinions and
values don’t matter.
(D) none of above
174. This decision making value has to do with
human leisure activities
(A) social
(B) ethical
(C) recreational
(D) aesthetic
175. The first step in making a decision is to:
(A) Brainstorm possible solutions
(B) Consider the consequences
(C) Take a deep breath and relax-think
positive
(D) Evaluate the decsion
176. Whether or not to go to college, what to
make for dinner, and where to go on your
next vacation are all examples of
(A) Decisions
(B) Integrity
(C) Priority
(D) Trade-off

166. B 167. A 168. A 169. B 170. B 171. B 172. B 173. B 174. C 175. C 176. A
177. D 178. B
1.1 Decision Making 19

177. Making quick decisions based upon how 183. Meets green and sustainable guidelines:
you feel at that moment (A) rational decision
(A) involuntary (B) LEED certified
(B) rational (C) implement
(C) reflexive (D) habitual behavior
(D) impulsive 184. Do you always have to have ?
178. One’s environment includes all except: (A) a break

NARAYAN CHANGDER
(B) right
(A) home
(C) second thoughts
(B) goals
(D) second thought
(C) school
(D) community 185. For store managers in a grocery retail-
ing chain, the most important influence on
179. The way a person thinks, feels and be- their day-to-day decision-making is likely
haves. to be:
(A) Character (A) The mission statement of the busi-
(B) Values ness
(B) The influence of external stakehold-
(C) Ethics
ers
(D) Role Model
(C) The objectives they have been set
180. Which of the following is a the best strat- (D) The local economic environment
egy for responsible decision making? 186. What is the job title of someone who an-
(A) Listing alternative decisions swers calls from and provides help for peo-
(B) Procrastination ple who are often in life threatening situa-
(C) Impulse decisions tions?
(D) Doing it on your own (A) 911 operator
(B) firefighter
181. According to the concept of stakeholder (C) emergency room nurse
mapping, how should a business act to- (D) emergency medical technician
wards stakeholders with low levels of in-
terest and low power? 187. The limbic system, a part of the brain
(A) Keep them satisfied that matures earlier than the prefrontal
cortex, play a central role in:
(B) Engage directly with them
(A) Sports
(C) Communicate only when necessary
(B) Speaking foreign languages
(D) Communicate with them frequently (C) Emotional responses
182. Buying the same brand of goods is a re- (D) Thinking ahead
sult of which of the following types of in- 188. A good decision is a decision.
formation searching?
(A) bad
(A) Internal searching (B) responsible
(B) External searching (C) success
(C) Basic searching (D) universal (one that everyone would
(D) Extensive searching make in that situation)

179. A 180. A 181. C 182. A 183. B 184. C 185. C 186. A 187. C 188. B
20 Chapter 1. ECONOMICS

189. Which of the following is NOT an emo- (C) Prevention, interrogation and contain-
tional block which hinders decision mak- ment
ing? (D) Preparation, containment, resolution
(A) Fear of success
(B) Fear of failure 195. Every decision starts with
(C) Activation (A) thinking through all your options.
(D) Stagnation (B) creating a practical, doable plan.
(C) identifying your short-and long-term
190. After identifying interests, skills, and goals.
abilities, it is necessary to:
(D) clarifying the details of your situation.
(A) match them with friends’ results
(B) share them with an employer 196. A stakeholder is any individual or organ-
(C) match them to possible careers isation who has:
(D) do nothing (A) A shareholding in a business
(B) A vested interest in activities and
191. An impulse decision is likely to be a re- decision-making of a business
sult of?
(C) A commercial relationship with a busi-
(A) considering all possible conse- ness
quences
(D) Bought from a business
(B) thoughtless action
(C) related decisions 197. Choosing the right action.
(D) studying a problem closely (A) Ethics
(B) Values
192. All of the following are qualitative tools
in decision making techniques except (C) Character
(A) Simulation (D) Role Model
(B) Brainstorming 198. All the knowledge & information you
(C) T-chart have at your disposal when making a de-
(D) Personal Judgment cision.
(A) Plans
193. is the process of suggestion as many
choices as possible without any evalua- (B) Resources
tion. (C) Steps
(A) Problem (D) People
(B) Risk
199. How else does making goals help?
(C) Brainstorming
(A) It helps to give you purpose and direc-
(D) Synergy tion in life
194. Which are the 3 stages of crisis manage- (B) It helps you learn how to use your
ment? time wisely
(A) Preparation, containment, recon- (C) It can make money magically appear
struction for your needs and wants
(B) Prevention, preparation and contain- (D) So you never have to spend money
ment again

189. C 190. C 191. B 192. A 193. C 194. B 195. C 196. B 197. A 198. B 199. A
200. D
1.1 Decision Making 21

200. What are the positives and negatives 206. A decision for repetive or routine prob-
to the solution, potential outcomes, which lem for which the responses have been al-
step is this considered. ready made is called
(A) Step 1 (A) Programmed decision
(B) Step 2 (B) Non programmed decision
(C) Step 3 (C) Strategic decision
(D) Step 4 (D) Professional decision

NARAYAN CHANGDER
201. Decision-making strategy in which you 207. Which is the third step in the problem
avoid a decision solving process?
(A) Escape (A) Define problem
(B) Compliance
(B) Identify decision criteria
(C) Play it Safe
(C) Develop alternatives
(D) none of above
(D) Implement decisions
202. Which of these is a disadvantage of
democratic management? 208. Changing colleges is referred to as
(A) Employees get closer to customers (A) reconsidering.
(B) Employees are more loyal to the busi- (B) freewriting.
ness (C) decision making.
(C) Staff are motivated through involve- (D) transferring.
ment
(D) Decision-making likely to be slower 209. Option
(A) A possible solution for a problem
203. When identifying a career that you
(B) Method of describing a problem
would find most satisfying you should:
(A) Evaluate existing resources (C) Somethingoffered or available as a
choice.
(B) Gather information
(D) none of above
(C) Evaluate your wants and needs
(D) All of the above 210. The best decisions from a perspective
are those that produce the greatest good
204. Non programmed decisions are likely to for the greatest number of people
be made by
(A) Rights
(A) Lower management
(B) Privilege
(B) Top management
(C) Middle management (C) Justice
(D) Supervisory management (D) Utilitarianism

205. What is the first step in the rational 211. Who would usually make strategic deci-
decision-making model? sions within an organisation?
(A) Define the problem (A) Shift Supervisor
(B) Identify the decision criteria (B) CEO or Managing Director
(C) Choose options (C) Middle Management
(D) Discuss what to do (D) The Janitor

201. A 202. D 203. D 204. B 205. A 206. A 207. C 208. D 209. C 210. D 211. B
212. B
22 Chapter 1. ECONOMICS

212. In the decision-making process, a trade- 217. Of the following, it is most important for
off is: your financial goals to be
(A) an impulse decision (A) long-term
(B) giving up one thing in return for an- (B) varied
other (C) achievable
(C) a three-step-process (D) demanding
(D) a group of alternatives
218. What do circles represent on a decision
213. A senior manager in a business presents tree?
his ideas to subordinates and invites ques- (A) Uncertain outcomes
tions. How would this leadership style be (B) Probabilities
categorised using the Tannenbaum Schmidt
(C) Expected returns
Continuum?
(D) Opportunity costs
(A) Tell
(B) Sell 219. Which leadership style suggests that
(C) Consult managers and leaders should change
and adapt theirstyle to different circum-
(D) Delegate
stances?
214. This decision making value has to do with (A) Paternalistic
the maintenance of human health (B) Autocratic
(A) social/cultural (C) Democratic
(B) health (D) Situational
(C) educational
220. What are the enemies of success accord-
(D) economic ing to His Highness?
(A) Overthinking and self doubt
215. What does the famous Arab poem men-
tioned in the chapter state? (B) Irrational thinking and self doubt
(A) What is brought by the wind will be (C) Delay and procrastination
carried away by the wind (D) Flawed decision making and indisci-
(B) O, wind, if winter comes, can spring pline
be far behind?
221. The lesson informs us that there are
(C) We are no more than candles burning steps to the decision-making process.
in the wind How many are there?
(D) Winds do not always provide what (A) 7
ships need
(B) 5
216. This decision making value has to do with (C) 3
what is beautiful or pleasing (D) 4
(A) economic
222. A person with good decision-making
(B) aesthetic skills:
(C) environmental (A) waits until the problem has been de-
(D) social fined by others.

213. B 214. B 215. D 216. B 217. C 218. A 219. D 220. C 221. A 222. B
1.1 Decision Making 23

(B) evaluates all the information before 228. Giving up rewards in one area to receive
making the decision. better benefits in another area is a:
(C) always makes the right decision. (A) career plan
(D) makes decisions based on feelings. (B) trade-off
(C) short-term objective
223. The stars-and-stripes flag is an exam-
ple of which of the following cultural el- (D) job duty
ements? 229. Making choices using your head instead

NARAYAN CHANGDER
(A) Ritual of your heart (feelings)
(B) Value (A) rational style of decision making
(C) Symbol (B) opportunity cost
(D) Hero (C) emotional
(D) passive-aggressive
224. What is the name of the process that
weighs the alternatives, gathers all neces- 230. How long do we stay angry on aver-
sary information, and can ultimately lead age?
you to the best choice in any given situa- (A) 1 day
tion?
(B) 60 days
(A) goal setting
(C) 20 minutes
(B) critical thinking
(D) 60 minutes
(C) decision making
(D) career planning 231. You evaluate or to determine the
value of something.
225. (U1C4L1:V4)The process of working to- (A) analyze
ward something you want to accomplish is
(B) criticize
called
(C) assess
(A) goal-setting
(D) none of above
(B) accomplishment attaining
(C) decision-making 232. “I am going to call my best friends at
(D) none of above least once a month for the next three
months, so that I can stay connected with
226. Using and listening to your “gut feeling” them .” What is the goals focus point?
is known as? (A) Environment
(A) Decsion making. (B) Relationships
(B) Intuition. (C) Education
(C) Reasoning. (D) none of above
(D) none of above
233. How can a person determine that a deci-
227. According to Goel et al (2000), which sion was a good one?
part of the brain may be responsible for (A) The decision met the person’s goals.
processing abstract problems? (B) The person is making more money.
(A) The temporal lobe (C) Family members think that it was a
(B) The frontal lobe good decision.
(C) The parietal lobe (D) The person is now using all of his/her
(D) The hypothalamus skills.

223. C 224. C 225. A 226. B 227. C 228. B 229. A 230. C 231. C 232. B 233. A
24 Chapter 1. ECONOMICS

234. The third step of decision making process (C) Make your decision without consider-
is ing the consequences
(A) linear prediction (D) Seek advice when you need it.
(B) Dependent prediction
240. Which skill will help you take control
(C) making Prediction over your life and give it purpose and di-
(D) independent prediction rection?
235. Why should values have influence mak- (A) Decision-Making
ing a decision? (B) Goal-Setting
(A) Because we all hold similar values. (C) Idea-Sharing
(B) Because we all have our unique set of (D) Academic Excellence
values.
241. Starbucks large coffee costs $
(C) Because other people’s opinions and
values don’t matter. (A) $2.75
(D) none of above (B) $6.25
(C) $4.25
236. Who would usually make tactical deci- (D) $3.50
sions within an organisation?
(A) Middle management 242. The D.E.C.I.D.E. Model is used for mak-
(B) Cleaners ing health based decisions. What does the
first D stand for in the model?
(C) CEO
(A) Define the Problem
(D) none of above
(B) Decide to Act
237. If you are buying a house, what would (C) Develop a Plan
be the best type of decision to make when (D) none of above
choosing which house to buy?
(A) default decision 243. Which step is the most important step in
(B) impulse decision the decision making process?
(C) resistance decision (A) Identifying the decision needs to be
made
(D) planned decision
(B) Analyzing the situation
238. An exchange of one thing in return for (C) Making the decision
another. (D) Reviewing the decision which was
(A) Evaluation made
(B) Trade
244. A schematic presentation that demon-
(C) Alternative
strates the probability potential of select-
(D) Alternate ing a particular course of action at specific
decision option point
239. Which is not a way to make a responsi-
ble decision? (A) Payoff matrix
(A) Accept responsibility for your deci- (B) Decision Trees
sions (C) Linear programming
(B) Be willing to make mistakes (D) Operations Research

234. C 235. B 236. A 237. D 238. C 239. C 240. B 241. C 242. A 243. A 244. B
245. A
1.1 Decision Making 25

245. How would employees in a large super- (C) Values

market chain be mapped in terms of their (D) The Situation
stakeholder interest and power?
(A) Low power & high interest 251. Which of the following is a private re-
source?
(B) Low power & low interest
(A) creativity
(C) High power & low interest
(B) income
(D) High power & high interest
(C) time

NARAYAN CHANGDER
246. Financial goals that you plan to accom- (D) health
plish within a year should be categorized
as goals. 252. When deciding to make a choice among
the alternatives, is important so that
(A) immediate
the group members can produce better de-
(B) savings cision than that of the individual
(C) long-term (A) Synergy
(D) short-term (B) Risk
247. Which is NOT a step in the Rational De- (C) Decision
cision Making Model? (D) Ignorance
(A) Consider all possible solutions 253. What does it mean to prioritize your
(B) Consider all possible alternatives goals?
(C) Define the situation /decision to be (A) Choose among multiple goals and
made complete the one that is the most impor-
(D) Identify the important criteria for the tant.
process and the result (B) Decide which goal would be the most
fun to complete
248. Those who do not enjoy their work
(C) List what you need to do to accom-
would be
plish your goals
(A) Not very productive
(D) Ask your friends to help you achieve
(B) Nonchalant your goals
(C) Indifferent
(D) Constantly tired 254. What does it mean if you are proactive?
(A) You act in a positive manner
249. Which is an example of a long term goal (B) You are through in completeing a task
(A) Earning a black belt in tae Kwan do
(B) watching less tv (C) You act as soon as you know some-
(C) teaching your dog to sit thing needs to be done
(D) alphabetizing your movie collection (D) You usually get your way

250. Which part of the decision making pro-
cess is where you decide if the decision
was a good one or if you should change
it next time
(A) Evaluate
(B) Outcomes
255. Which of the following is NOT a step in
the decision making process?
(A) Seeking help every time
(B) Gathering information
(C) Defining the problem
(D) Taking action

246. D 247. B 248. A 249. A 250. A 251. B 252. A 253. A 254. C 255. A
26 Chapter 1. ECONOMICS

256. What actually happen? How did it go?
Did it Work? What step is this consid-
ered?
(A) Step 1
(B) Step 2
(C) Step 6
(D) Step 7
257. Naomi has decided on several financial
goals. What step would be LEAST likely
to help her reach her priority goal?
(A) Carefully consider each choice and
option
(B) Do what feel right today
(C) List the benefits and obstacles of
each goal
(D) Identify the goal she most wants to
do
(C) Review your decision
(D) Choose one
262. Thoughtful decisions are
(A) Easy everyday decisions that won’t
impact you future
(B) Important as they impact your future
in great ways
(C) Decisions which affect your health
(D) None of the above
263. Which term refers to judging someone on
the basis of one’s perception of the group
to which that person belongs.
(A) Discrimination
(B) Selective perception
(C) Stereotyping
(D) Representative Bias

258. (U1C4L1:Q7)If your long-term goal is to 264. In a decision tree, the financial value of
become a game programmer, an interme- an outcome (calculated by multiplying the
diate goal would include estimated financial effect by its probabil-
(A) playing more games ity) is known as the:
(B) learning how to create videos (A) Net gain
(C) learning a programming language (B) Expected value
(D) none of above (C) Net profit
(D) Expected profit
259. Which of the following is a strategy for
responsible decision making? 265. We can categorize decisions in three dif-
(A) Listing alternative decisions ferent ways
(B) Procrastination (A) Healthy
(C) Impulse decisions (B) Impulsive
(D) Doing it on your own (C) Thoughtful
(D) All of the above
260. (U1C4L1:Q3)The danger in setting your
goals too low is that you may 266. Qualities that make an individual unique
(A) be tempted to give up on yourself (A) work environments
(B) never reach your full potential (B) personal characteristics
(C) become lazy (C) personal orientation
(D) none of above (D) mechanical orientation
261. What is the second step? 267. Which four major ways only the leader
(A) Evaluate choices makes the decision
(B) Identify choices (A) Consensual

256. D 257. B 258. C 259. A 260. B 261. B 262. B 263. C 264. B 265. D 266. B
267. C 268. A
1.1 Decision Making 27

(B) Democratic 273. Why is problem recognition important

(C) Autocratic during decision making?
(D) Laissez-faire (A) Problem recognition will satisfy the
need
268. Becoming president of the US is an ex-
(B) Because finding the problem help
ample of a(n)
makes the decision
(A) Long term goal
(C) I don’t know
(B) Trade off

(C) Attitude
(D) Priority
269. (U1C4L1:Q1)If you have a decision to
make or problem to solve, which of the
following should you do before comparing
alternatives?
(A) Make a plan
(B) Develop solutions or courses of ac-
tion
(C) Outline how to carry out your decision
NARAYAN CHANGDER
(D) none of above
274. Which of these statements best de-
scribes what is meant by delegation?
(A) Management feedback to directors
(B) Authority is passed down the hierar-
chy
(C) Employees & management work to-
gether rather than for each other
(D) Tasks are carried out by senior rather
than junior management

(D) none of above 275. How many steps is the framework model
for making effective decisions that we
270. When are we more likely to use System talked about in class?
1 thinking?
(A) 5 steps.
(A) When we have practiced something a
lot. (B) 6 steps.
(B) When we have too much information (C) 7 steps.
to process. (D) none of above
(C) When the problem is highly abstract.
(D) When we need to transfer informa- 276. As with managerial functions, the con-
tion from one situation to another. cluding action in the decision-making pro-
cess is to it.
271. Decisions can be-and often should be: (A) staff
(A) Updated (B) plan
(B) Permanent
(C) control
(C) Reviewed or Changed
(D) Lead
(D) Both a & c
277. Which kind of decision may a long time to
272. What is the NMI used for?
make, may be difficult to make, and may
(A) NMI is the amount of your variable ex-
affect you for the rest of your life?
penses
(A) Everyday decision
(B) It is the amount of income used to de-
termine your monthly spending budget. (B) Life changing decision
(C) It determines your fixed expenses. (C) Decision that becomes a habit
(D) NMI is your discretionary allowance. (D) decision with long term effects

269. B 270. B 271. D 272. B 273. B 274. B 275. C 276. C 277. B 278. D
28 Chapter 1. ECONOMICS

278. If a rooster lays a egg on a slanted roof 284. (U1C4L1:F1)Which skill will help you
which side will it fall? take control over your life and give it pur-
(A) down pose and direction?
(B) up (A) Decision-making
(C) left (B) Goal-setting
(D) there is no egg (C) Idea-sharing
(D) Academic excellence
279. The second step of decision making is
(A) List your options 285. (U1C4L1:V2)The process of making a
(B) Outline the consequences choice is called
(C) Identify the problem (A) goal-setting
(D) Make the decision (B) choice choosing
(C) decision-making
280. Selecting among alternatives is the pro-
(D) none of above
cess of
(A) transferring. 286. What is freedom?
(B) rethinking. (A) You have the freedom to live the life
(C) decision-making. you choose. We have freedom of speech,
(D) problem-solving. freedom of travel, freedom of religion, etc.

281. The second step in the decision-making (B) The right to spell
process is to: (C) All people are protected and treated
(A) Analyze and study your options fairly and equally according to law. Every-
(B) List your resources and think about al- one has the same consequences
ternatives (D) none of above
(C) Identify the decision to be made
287. In 2016, what is the average compen-
(D) Evaluate the consequences
sation United Airlines passengers were of-
282. The intuitive model of decision making fered when they are asked to leave the
uses plane (aka. “bumped”) or refused board-
ing?
(A) critical information
(A) 350
(B) queuing models
(B) 573
(C) decision trees
(C) 752
(D) feelings
(D) 950
283. What are we going to about the problem,
ranking the options. What step is this con- 288. This decision making value has to do with
sidered? the protection of natural resources
(A) Step 4 (A) environmental
(B) Step 3 (B) scientific
(C) Step 5 (C) health
(D) Step 7 (D) recreational

279. A 280. C 281. B 282. D 283. C 284. B 285. C 286. A 287. B 288. A 289. A
1.1 Decision Making 29

289. What would be an example of distress? 295. Giving your decision time is a strategy to
(A) Getting bad grades follow when you
(B) Getting married (A) determine outcomes.
(C) Getting a house (B) assess alternatives.
(C) freewrite.
(D) Going on vacation
(D) can’t make up your mind.
290. Basically, a(n) is a judgment reached
296. In the Blake Mouton Managerial Grid,
after consideration.

NARAYAN CHANGDER
what name is given to a leadership style
(A) fact with maximum concern for both people and
(B) situation performance?
(C) inference (A) Team management
(D) decision (B) Impoverished management
(C) Country club
291. Which of the following is NOT a founda- (D) Authority/obedience
tion of an efficient team?
(A) Mutual trusts 297. Social pressure can also influence pur-
chasing decisions. Which of the following
(B) Clearly set goals
is not an example of social pressure?
(C) Irresponsibility
(A) trends and fads
(D) Good communication (B) word of mouth recommendations
292. A good decision is (C) age and gender
(A) well thought out (D) celebrity endorsements
(B) made quickly 298. Measurable Achievable Relevant
(C) always the easiest to make Timely What step of the Decision
Making Process is this considered.
(D) one that makes everyone happy
(A) Step 7
293. A decision for repetitive or routine prob- (B) Step 2
lems for which the responses have been (C) Step 3
already been decided and been known to (D) Step 1
the person who will make the decision is
called: 299. The stakeholder group most likely to be
(A) programmed. interested in the financial performance of
a business are:
(B) non programmed.
(A) Employees
(C) strategic.
(B) Suppliers
(D) professional. (C) Customers
294. A manager must in order to deter- (D) Shareholders
mine whether any errors occurred or has 300. Which of these is MORE important for
been made. following the decision making process?
(A) evaluate decision (A) Career
(B) develop alternatives (B) Lunch
(C) implement decisions (C) Homework
(D) define the problem (D) Clothing

290. D 291. C 292. A 293. A 294. A 295. B 296. A 297. C 298. B 299. D 300. A
301. C
30 Chapter 1. ECONOMICS

301. When making an informed decision, a 307. How many steps are there in the frame-
person would usually start by work model for making effective deci-
(A) evaluating thier decision sions?
(B) identify the problem (A) 4 steps.
(C) considering the advantages and dis- (B) 6 steps.
advantages
(C) 8 steps.
(D) choosing a solution
(D) none of above
302. Without considering the , Rose left
her 5 year old sister alone with finger 308. A technique for evaluating alternative
paints. Within minutes, the carpet and solutions by writing down the advantages
walls were covered with the child’s color- of each option
ful fingerprints!
(A) Queuing Theory
(A) Goal
(B) T-chart
(B) Proactive
(C) Attitude (C) Nominal Grouping
(D) Consequences (D) Simulations

303. The third step of decision making is 309. Who would usually make organisational
(A) List your options decisions?
(B) Outline the consequences (A) Chairman
(C) Identify the problem
(B) Lower Management
(D) Make the decision
(C) Middle Management
304. Which part of the HELP acronym asks the (D) none of above
question, Would your parents approve?
(A) H 310. Dulce was accepted to a biology program
(B) E with a rigorous schedule and a high tuition,
(C) L but good professors. What would be a
(D) P benefit in this situation?
(A) the stressful workload
305. What is the last step of a decision mak-
ing process? (B) the high tuition
(A) Implementation (C) the rigorous schedule
(B) Evaluation and feedback (D) the good professors
(C) Development of alternatives
(D) Analysis of causes 311. Procrastination is a decision-making
strategy in which a person does which of
306. A key benefit of using hunch-based the following?
decision-making is that:
(A) Let someone else make the decision
(A) It is time-consuming
(B) Full use is made of all available data (B) Consider every possible option
(C) The decision-making can be auto- (C) Delay making a decision
mated (D) Pick the option with the lowest level
(D) Decisions can be made quickly of risk

302. D 303. B 304. D 305. B 306. D 307. C 308. B 309. B 310. D 311. C 312. A
1.1 Decision Making 31

312. The process of making a choice or solving 318. The value of the choice that could have
a problem. been chosen, but was not.
(A) Decision Making (A) Trade-Off
(B) Experience (B) Cost Benefit
(C) Integrity (C) Opportunity Cost
(D) Values (D) none of above

313. Joshua has set the goal of achieving all 319. Match the Definition.One person makes

NARAYAN CHANGDER
“A”s during this year of school. Which the decision on the behalf of the group gen-
term best describes this goal? erally the person with the authority to do
(A) long-term goal so.
(B) self-goal (A) Autocratic
(C) short-term goal (B) Democratic
(C) Laissez-faire
(D) inner goal
(D) Consensual
314. How many steps are there in the (Finan-
cial Decision-Making Process) 320. Which war is spoken abouas the time of
missile attacks and air raids?
(A) 3
(A) The Gulf War (1991)
(B) 5
(B) The Great Peasants’ War (1524-1525)
(C) 4
(D) 6 (C) World War I (1914-1918)
315. Some months have 31 days. How many (D) The Winter War (1939-1940)
have 28?
321. What is something with an element of
(A) none danger that might cause harm?
(B) 1 (A) Risk
(C) 11 (B) Opinion
(D) 12 (C) Problem
316. When reading a magazine, Lisa pays at- (D) Hazard
tention to some ads but ignores the others. 322. When a person acts on a decision, there
Which of the following types of selective are always:
perception is this an example of?
(A) evaluations
(A) Selective exposure (B) schedules
(B) Selective attention (C) consequences
(C) Selective comprehension (D) . products
(D) Selective hearing
323. Consequence
317. Which of the following is a disadvantage (A) Theresult or outcome of an action or
of buying a used car? event.
(A) Higher cost (B) What happens when you are in trou-
(B) Higher insurance fee ble
(C) Better financing (C) A type of criteria
(D) Limited choice (D) none of above

313. C 314. D 315. D 316. B 317. D 318. C 319. A 320. A 321. A 322. C 323. A
324. B
32 Chapter 1. ECONOMICS

324. (U1C4L1:Q5) goals are ones you (B) sibling influences

want to achieve in one to five years. (C) internal influences
(A) Short-term (D) media influences
(B) Intermediate
331. After making a decision, you should
(C) Long-term
(A) Celebrate
(D) none of above (B) Change it
325. What lies behind every major failure? (C) Reflect on the decision
(A) A failed thought (D) Identify the problem
(B) A failed decision 332. Banks and other providers of debt fi-
(C) A failed perception nance are most likely to be interested in:
(D) A failed hypothesis (A) The customer service levels of a busi-
ness
326. Purchase of raw materials comes under (B) The profitability and liquidity of a busi-
which kind of decision ness
(A) Programmed decision (C) The business’ reputation for product
(B) Strategic decision quality
(C) Organisational decision (D) Working conditions in the business
(D) Non programmed decision
333. Usually the best decisions include us-
327. Which theory of memory could be used ing?
to explain peak-end rule? (A) Intuition
(A) Recency effect (B) Reasoning
(B) False memory syndrome (C) Both intuition and reasoning
(C) False memory syndrome (D) none of above
(D) Flashbulb memory theory 334. Which of these is a feature of scientific
decision-making?
328. What is the act of making a choice or com-
(A) It is only suitable for decisions involv-
ing to a solution?
ing substantial risk
(A) Option
(B) Involves all relevant members of man-
(B) Choice agement
(C) Decision (C) It guarantees the right decision
(D) Goal (D) It Is mainly based on data
329. Decision-making is the process of 335. To enhance our ethical priorities, using of
(A) thinking critically. the classic list of pros or cons when making
(B) working backward. a decision is example of:
(C) choosing from various alternatives (A) Rating the pros only on a scale from 1
to 10.
(D) using analogies.
(B) Rating each pro and con on a scale
330. The internet, magazines, T.V., music, from 1 to 10.
newspapers, movies, videos games etc. (C) Ask others about their opinions on our
are all considered: pros and cons.
(A) external influences (D) none of above

325. B 326. A 327. A 328. C 329. C 330. D 331. C 332. B 333. C 334. D 335. B
1.1 Decision Making 33

336. Which of the following is a ‘Strategic’ de-
cision?
(A) Increase price of plastic bags to 20p
across
(B) Arrange for uplifting of bins
(C) Open 5 new stores across the UK over
the next 2 years
(D) Hire new supervisor for Paisley store
(B) False-Your luck, not decisions, deter-
mine most of the good and the bad in your
life.
(C) False-Your fate, not luck, determine
most of the good and the bad in your life.
(D) None of the above
342. If Henry yells at Tiffany and demands
that she get in the car, what type of com-

NARAYAN CHANGDER
munication is he using?
337. Which is NOT one of the 5 points to in-
(A) Passive
corporate during decision making?
(B) Assertive
(A) Search process
(C) Aggressive
(B) Selection stage
(D) none of above
(C) Problem recognition
(D) Democratic 343. What do you call the thing that you do
not select, whenever you make a trade-
338. Which part of the HELP acronym asks the off
question, Does it show respect for your- (A) Opportunity Cost
self or others? (B) Trade-Off
(A) H (C) Attitude
(B) E (D) Media
(C) L
344. What is NOT an effect of long-term
(D) P spending?
339. When making the decision, you should (A) Expenses exceed income.
consider your (B) Use of debt and credit increases.
(A) Values (C) Credit counseling becomes neces-
sary.
(B) Decision
(D) Impulse buying occurs on a regular
(C) Problem basis.
(D) Mother
345. To be sure a decision is , think long
340. An advantage of using decision trees in and hard about its consequences.
decision-making is: (A) correct
(A) Probabilities are rarely wrong (B) worthy
(B) Only costs are considered, not bene- (C) accurate
fits (D) realistic
(C) A decision-tree uses qualitative
rather than quantitative data 346. Which of the following is a solution that
is chosen from among alternatives?
(D) Choices are set out in a logical way
(A) Decision-making
341. Your decisions, not luck, determine most (B) Problem
of the good and the bad in your life. (C) Uncertainty
(A) True (D) Decision

336. C 337. D 338. B 339. A 340. D 341. A 342. C 343. A 344. D 345. B 346. D
347. A
 34 Chapter 1. ECONOMICS

347. Angie recognized that there was a prob- (A) Proactive

lem at work and took action right away to (B) Decision
correct it. Her boss praised her for being (C) Long term goal
(D) goal

1.2 Cost Benefit Analysis

1. The following are techniques for calculat-
ing the cost-benefit for non-market valua-
tion cases, except
(A) Revealed preference techniques
(B) Potential income techniques
(C) Averted expenditure techniques
(D) Stated preference techniques
6. When is trading with externalities effi-
cient?(according to the coase theorem)
(A) always
(B) without transaction costs
(C) with transaction costs under 1mio.$
(D) never

2. For decision making in Cost-Benefit analy-

7. You choose to study for a test instead of
sis, there are several methods that can be
going to a movie with friends. What is you
used, except
cost?
(A) Net Present Value (NPV)
(A) getting a good grade on the test
(B) Benefit-Cost Ratio
(C) Cost Effectiveness Analysis (B) spending money
(D) Discount Rate (C) not going to the movie with friends

3. What do businesses utilize when making (D) none of above

decisions among various projects?
(A) Benefit-cost analysis 8. Some of the following are matters related
(B) optional analysis to Cost-Benefit Analysis (CBA), except
(C) profit-margin analysis (A) Analysis of Strengths (S) and Weak-
(D) trade-off analysis nesses (W)
(B) Sensitivity Analysis
4. In terms of today’s lesson, what is a
cost? (C) Analysis of Distribution Effects and
(A) a negative outcome Impact on Poverty
(B) a positive outcome (D) Risk and Uncertainty Analysis
(C) the price of an item
(D) none of above 9. Benefits that only certain groups receive
but other groups suffer because of the
5. In terms of today’s lesson, what is a ben- project are referred to as?
efit?
(A) Real Benefits (Real)
(A) a negative outcome
(B) Pseudo Benefits (Pecuniary)
(B) a positive outcome
(C) the price of an item (C) Tangible Benefits
(D) none of above (D) Intangible Benefits

1. B 2. D 3. A 4. A 5. B 6. B 7. C 8. A 9. B 10. A
1.2 Cost Benefit Analysis 35

10. In Cost/Benefit Analysis, adding an addi- 15. The loss of forest views replaced by res-
tional unit pays off as long as: idential buildings, in the CBA analysis
(A) Marginal benefits exceed marginal should be included in the category?
costs. (A) Tangible Benefits
(B) Marginal costs exceed marginal ben- (B) Intangible Benefits
efits.
(C) Wukud Fee
(C) Marginal costs equal marginal bene-
fits. (D) Intangible Costs

NARAYAN CHANGDER
(D) None of the above.
16. A is something that happens as a re-
11. The present value will be higher when? sult of something else.
(A) The future value is low and the time is (A) consequence
long (B) benefit
(B) The future value is low and the time is (C) cost
short
(D) decision
(C) The future value is high and the time
is long 17. When conducting a cost-benefit analy-
(D) The future value is high and the time sis, people analyze where to spend their
is short money to see what will give them the
most
12. What is the most important fact of the
cost-benefit principle? (A) Answers
(A) costs are not allowed to be higher (B) Taxes
than 1mio.$ (C) Benefits
(B) costs need to be greater than costs (D) Consequences
(C) benefits need to be greater than costs
18. If it is difficult to calculate all types of
(D) benefits are always measured in $ costs and benefits in the CBA analysis, the
calculation of the CBA analysis can be done
13. You decide to spend all the money you using the?
saved on a new pair of expensive shoes. (A) Econometrics
What is the benefit of your decision?
(B) Tabel Input-Output (IO)
(A) all the money you saved
(C) Data Envelopment Analysis (DEA)
(B) the price you paid for the shoes
(D) Analytical Hierarchy Process (AHP)
(C) not wearing your shoes because they
are too expensive
19. What is a benefit that is difficult to assess
(D) having new expensive shoes financially?
14. Which benefit is intangible? (A) intangibles
(A) increased customer goodwill (B) increased profits
(B) increased profits (C) decreased expenses
(C) increased productivity (D) if it can’t be assessed financially it’s
(D) increased efficiency not a benefit

11. D 12. C 13. D 14. A 15. D 16. A 17. C 18. D 19. A 20. D
36
20. Following situation:You want to relax in
a park and you hear noises of playing kids
in the background, which are irritating you.
What is the correct economical term for the
noise?
(A) external benefit
(B) gain in surplus
(C) loss in surplus
(D) external cost
21. The main problem that becomes the focus
of the Cost-Benefit Analysis is?
(A) Efficient use of factors of production
(B) Distribution of costs incurred and ben-
efits obtained
(C) Economic stabilization, both micro
and macro
(D) The benefits must be greater than the
costs
22. When “thinking like an economist”, one
should accept an option when
(A) the benefits outweigh the costs.
(B) the costs outweigh the benefits.
(C) there are no costs.
(D) there are no marginal costs.
23. Who is affected by externalities of an eco-
nomic activity?
(A) always the generator of activity
(B) unrelated third parties
(C) everyone
(D) the whole company
24. What is the name of the process used to
make decisions in the business world?
(A) decision analysis
(B) expenses-benefit analysis
(C) bad-good analysis
(D) cost-benefit analysis
25. What is economic cost?
(A) a negative outcome
(B) a positive outcome
21. A 22. A 23. B 24. D 25. C
Chapter 1. ECONOMICS
(C) the price of an item
(D) none of above
26. Essentially, what is a cost-benefit analy-
sis?
(A) a list of all the employees you want to
hire
(B) a pros-cons list
(C) a christmas wishlist
(D) a list of all the projects you want to do
27. If the CBA analysis of a project in a coun-
try is carried out by referring to the same
or nearly the same method of CBA anal-
ysis of a project in another country, then
the method is called the?
(A) Benefit Transfer
(B) Contingent Valuation
(C) Choice Modelling
(D) Hedonic Pricing
28. What is the impact of underutilization of
resources?
(A) higher unemployment and more pros-
perity.
(B) higher unemployment and less pros-
perity.
(C) lower unemployment and more pros-
perity.
(D) No change in unemployment and no
change in prosperity.
29. What is an example of a cost?
(A) Party time!
(B) The china cups are 10 dollars
(C) Amy got a bow because she spent 1
dollar at the Dollar Tree
(D) Brodie did not have enough money for
a toy because he was saving up for college
30. Which sentence is a example of a benefit?
(A) I did not have a toy because I saved
up for college
(B) I got a fun toy to play with that I
bought from the store
26. B 27. A 28. B 29. D 30. B 31. B
1.2 Cost Benefit Analysis 37

(C) I like apples
(D) Doing your chores
31. What is a cost-benefit analysis?
(A) The taxes that people pay when they
buy something.
(B) A process that allows businesses and
individuals to analyze where to spend
36. All of the following are possible oppor-
tunity costs to the decision to go out for
Pizza except
(A) You could have gone out for Chinese
food
(B) Eaten at home instead
(C) You could have gone to your friends
house

NARAYAN CHANGDER
money. (D) You will have consumed a lot of food
(C) The amount of money required to
have or do something 37. Egyptian pharaohs likely had to perform
a cost-benefit analysis before making big
(D) none of above decisions such as whether or not to build
32. What is the correct formula for gain in sur-
plus? (A) pyramids
(A) savings-least costly solution (B) mosques
(C) ziggurats
(B) savings-sum of costs
(D) steles
(C) revenue-least costly solution
(D) revenue-variable costs 38. Giving up one alternative good or service
for another is called
33. This term means the good things or pros (A) an opportunity cost
of a business decision.
(B) a scarcity
(A) costs
(C) a trade-off
(B) outcome (D) a want
(C) benefits
39. The process of quantifying costs and ben-
(D) intangibles
efits of a decision
34. The cost of the next-best use of your (A) Integrity
money or time when you choose to do one (B) Negotiate
thing rather than another is known as (C) Mark Up
(A) opportunity cost (D) Cost-Benefit Analysis
(B) marginal cost
40. You choose to study for a test instead of
(C) variable cost
going to a movie with friends. What is the
(D) fixed cost benefit of your choice.
(A) Seeing the movie
35. You decide to spend all the money you
saved on a new pair of expensive shoes. (B) spending money
What is the cost of your choice? (C) hanging with friends
(A) new shoes (D) getting a good grade on a test
(B) all the money you saved 41. All of the following may be benefits of go-
(C) showing off your new shoes ing to school except
(D) none of above (A) Getting an education

32. A 33. C 34. A 35. B 36. D 37. A 38. C 39. D 40. D 41. B 42. B
 38 Chapter 1. ECONOMICS

(B) Getting less sleep 45. What is the principle behind time value of
(C) Seeing your friends money?
(D) Not sitting at home being bored (A) Cash in and cash out

42. Which is NOT an example of a cost? (B) Money tomorrow is worth more than
money today
(A) increased expenses
(C) Money today is worth more than
(B) increased efficiency
money tomorrow
(C) money for giving employee benefits
(D) Projects with more risk have a lower
(D) money for giving employees wages
discount rate
43. Which of the following is a disadvantage
of cost-benefit analysis? 46. Policy impact analysis that allows for
(A) It does not consider the time value of quantification in different types of units
money is?
(B) It is too complex to implement (A) Cost and Benefit Analysis (CBA)
(C) Different projects cannot be easily (B) Cost Effectiveness Analysis (CEA)
compared (C) Impact Analysis (IA)
(D) Not all costs and benefits can easily (D) Discount Rate
be assigned monetary values
47. The amount of time it takes to earn back
44. This term means the expenses or the cons
what you lost in a business decision is
to making a business decision.
(A) benefit (A) recovery period
(B) cost (B) earning period
(C) payback period (C) lost period
(D) analysis (D) payback period

1.3 Division of Labor and Specialization

1. when people are experts in their field to (B) Comparison of work in other produc-
the degree that they can offer services for tion stages
sale to customers, they are demonstrat- (C) Slow down of work in other produc-
ing which of the following economic con- tion stages
cepts?
(D) Stoppage of work in other production
(A) division of labor stages
(B) specialization
3. There are types of division of labor.
(C) paradox of value (A) Two
(D) none of above (B) Three
(C) Four
2. Disruption in one production stage results
(D) Five
in which of the following?
(A) Continuance of work in other produc- 4. *Workers perform fewer tasks in order to
tion stages operate more efficiently

43. C 44. B 45. C 46. C 47. D 1. B 2. D 3. B 4. B

 1.4 Economic Institutions 39

(A) Land (D) scarcity

(B) Division of Labor
7. Which of the following is not an advantage
(C) Factors of Producation of Division of Labor?
(D) Marginal Benefit
(A) Raising living standards
5. Mrs. Pinero opens her own store, selling (B) Resources are saved
pink pencils. Her business is an example (C) Raising labor productivity
of (D) Greater risk of unemployment

NARAYAN CHANGDER
(A) Division of labor
(B) Mass production 8. Kathy, Sue, and Christina own a bakery.
Each day all three women spend hours bak-
(C) Specialization
ing cakes, decorating cakes, and packaging
(D) Pinkship cakes. Which economic concept would help
6. You give up one thing to have more of an- them become more efficient?
other in (A) Scarcity
(A) a trade off (B) Productivity
(B) an opportunity (C) Specialization
(C) production (D) Interdependence

1.4 Economic Institutions

1. What are the benefits associated with tak- (B) Pawn loan
ing out a payday loan? (C) Payday loan
(A) Quick cash, sometimes within the (D) none of above
hour, don’t need a credit rating, easy so-
lution and access. 4. Patrick has bought one too many video
(B) I can get money for free games and has not paid his speeding ticket,
which has to be paid TODAY. He needs
(C) There is no interest payments for pay-
money fast and he can pay it back when he
day loans
gets paid Friday. Which one will he most
(D) None of the above likely choose?
2. Currently how many members are in the (A) Title Pawn
IBRD? (B) Credit Union
(A) 198 (C) Payday Loan
(B) 190 (D) Bank
(C) 193
5. The governing body of the society.
(D) 189
(A) Institutions
3. Short-term loan that provides immediate (B) State
cash by securing a borrower’s written (C) Leaders
check or receiving authorization for auto-
(D) Government
matic withdrawal from the borrower’s de-
pository institution account 6. The following are Government-Owned and
(A) Title loan Controlled Corporations EXCEPT

5. C 6. A 7. D 8. C 1. A 2. D 3. C 4. C 5. B
40 Chapter 1. ECONOMICS

(A) Development Academy of the Philip- 12. All of the following describe the opera-
pines tions of a bank EXCEPT
(B) Government Service Insurance Sys- (A) pay a small amount of interest on
tem money deposited
(C) Clark Development Corporation (B) borrow money from the government
(D) Petron (C) make various types of loans
(D) offer direct deposits
7. This is a type of reciprocity that refers
to an exchange that incurs no calculation 13. an organized political community living un-
of value or immediate repayment of the der a single system of government.
goods or services. (A) State
(A) balanced reciprocity (B) Economic Institution
(B) generalized reciprocity (C) Non-state Institution
(C) market reciprocity (D) GOCC
(D) negative reciprocity 14. Where is the headquarters of BRICS New
Development Bank situated?
8. Which of the following bank was once a
(A) Beijing, China
building society?
(B) Moscow, Russia
(A) Sagicor Bank
(C) Cape Town, South Africa
(B) National Commercial Bank
(D) Shanghai, China
(C) Scotiabank
(D) Jamaica National Bank 15. The exchange of goods and services
through a market.
9. Which is at the opposite end of the political (A) Transfers
spectrum from democracy? (B) Redistribution
(A) totalitarianism (C) Reciprocity
(B) authoritarianism (D) Market Transactions
(C) traditional authority
16. system of private ownership and enter-
(D) charismatic authority prise that acts based on their own private
10. The exchange of goods or services, with and self-interest .
or without money. (A) redistribution
(A) Transactions (B) market transactions
(B) Transfers (C) reciprocity
(C) Exchange (D) market
(D) Barter 17. What are payday loans
(A) A loan you repay on your payday.
11. Police Stations and Fire Stations are con-
(B) Short term unsecured loan with very
sidered to be
high interest rates.
(A) both private and public owned
(C) Short term secured loan with very
(B) Private-owned high interest rates.
(C) Public-owned (D) Short term loan with low interest
(D) none of above rates.

6. D 7. B 8. D 9. A 10. A 11. C 12. B 13. A 14. D 15. D 16. D 17. B 18. A

1.4 Economic Institutions 41

18. A loan based on the value of personal 24. He identified the 3 forms of reciprocity.
property. (A) Clifford Geertz
(A) Pawn loan
(B) George Murdock
(B) Student loan
(C) Marshall Sahlins
(C) Rent-to own loan
(D) none of above (D) Fredrick Barth

19. The most common type of bank accounts 25. The environmental lobby best exemplifies

NARAYAN CHANGDER
(A) CD’s and DDA’s a(n)
(B) Mutual Funds (A) public policy.
(C) Money market accounts (B) mass media influence.
(D) Savings & Checking accounts (C) interest group.
20. What type of practice was exemplified (D) power of the voting public.
by Microsoft Corporation’s insistence that
manufacturers include only its Internet 26. a direct exchange of goods or services
browser on their computers? (A) transfer
(A) monopolistic (B) redistribution
(B) capitalistic (C) market transactions
(C) oligopolistic
(D) reciprocity
(D) socialistic
21. What is owned by stockholders and oper- 27. The factors of production are owned by
ated for profit? the government, which regulates economic
activity.
(A) Commercial Bank
(B) Mutual Savings Bank (A) socialism
(C) Credit Union (B) capitalism
(D) savings and loan association (C) Buddhism

22. Which of the following statements is not (D) anarchy

correct?
28. Which financial institution is owned by its
(A) Both the IMF & IBRD have headquar- members?
ters in Washington
(A) financial service company
(B) India’s vote share in the International
Monetary Fund is 10% (B) savings and loan association
(C) IBRD is known as World Bank also (C) commercial bank
(D) Both IMF & World Bank are the known (D) credit union
as the Bretton Woods twins.
29. What country was the center of European
23. Piece of ownership in a company, mutual trading in the 11th century?
fund or other investment
(A) Greece
(A) Share/stock
(B) 401K (B) England
(C) Bond (C) France
(D) none of above (D) Italy

19. D 20. A 21. A 22. B 23. A 24. C 25. C 26. D 27. A 28. D 29. D 30. D
42 Chapter 1. ECONOMICS

30. How much is each depositor insured for in 36. provides the distribution of goods and ser-
a commercial savings account? vices to the members of the society.
(A) $50, 000 (A) State
(B) $100, 000 (B) Economic Institution
(C) $200, 000 (C) Redistribution
(D) $250, 000 (D) Reciprocity

31. A central authority usually has the privi- 37. Money advanced to a business with an
lege and responsibility to make decisions interest charge that must be paid and re-
about the goods or money later will be re- turned at some point in the future.
allocated among the group as a whole. (A) Purchases
(A) Reciprocity (B) Mortgage
(B) Transfers (C) Debt
(C) Market Transactions (D) Loans
(D) Redistribution 38. are organized by workers and laborers for
32. The role of the World Trade Organisation members to share mutual benefit. One
(WTO) is of the major goals of labor unions is to
achieve improved working conditions of a
(A) To reduce poverty
certain country’s labor force.
(B) To develop trade in more developed
(A) International Organizations
countries
(B) Trade Unions
(C) To develop trade restrictions
(C) Development Agencies
(D) To liberalise international trade
(D) Corporations
33. Type of loan that was created for pur-
39. When was World Bank established?
chasers to be able to make home owner-
ship more attainable. (A) Dec 1945
(B) Mar 1947
(A) Loans
(C) Apr 1945
(B) Debt
(D) Jan 1947
(C) Contract
(D) Mortgage 40. Brooke is smart, financially stable, and is
looking for a loan that offers a low inter-
34. A very important non-state institution est rate and not much risk. Where should
that regulates the flow of the people’s she apply for a loan at?
flow of money. (A) Title Pawn
(A) Cooperatives (B) Payday Lender
(B) Corporations (C) Bank
(C) International Organizations (D) Credit Union
(D) Banks
41. The word “bank” originally comes from a
35. Which is an exanple of social institutions word meaning
(A) Bank (A) bench
(B) University (B) book
(C) Supermarket (C) money
(D) none of above (D) safe

31. D 32. D 33. D 34. D 35. B 36. B 37. D 38. B 39. A 40. D 41. A 42. A
1.4 Economic Institutions 43

42. Which of the following people works in (B) Creditors

the primary sector? (C) Interest
(A) a farmer who raises chickens (D) Secured
(B) a baker
48. It occurs when an action that has a neg-
(C) a website developer ative effect upon someone else is recip-
(D) a dentist rocated with an action that has approx-
imately equal negative effect upon an-
43. An economy usually experiences periods
other.

NARAYAN CHANGDER
of booms and recessions. A period of re-
cession usually results in unemployment. (A) Negative Reciprocity
This is specifically (B) Off Reciprocity
(A) Technological unemployment (C) Inverse Reciprocity
(B) Cyclical unemployment (D) Rejection Reciprocity
(C) Seasonal Unemployment 49. welfare, financial aid, social security, and
(D) Frictional Unemployent government making subsidies for certain
businesses are some of the examples of
44. How much is each depositor insured for in what?
a credit union? (A) transfers
(A) $50, 000 (B) economic
(B) $100, 000 (C) market transactions
(C) $200, 000 (D) reciprocity
(D) $250, 000
50. Which New Deal Program helped people
45. system of roles and norms that governs trust banks again? It insures peoples’
the production, distribution, and consump- money in a bank up to $ 250, 000.
tion of goods and services (A) CCC
(A) political institution (B) NIRA
(B) economic institution (C) FDIC
(C) family institution (D) SEC
(D) religious institution
51. The value of Special Drawing Right (SDR)
46. A situation where there are two sectors of is determined by the basket of curren-
an economy are at different levels of de- cies.
velopment and where one is significantly (A) 7
more technologically advanced than the (B) 6
other is called (C) 4
(A) Foreign Direct Investment (D) 5
(B) Fiscal policy
52. The following are the major actors of
(C) Economic Dualism
Transnational Advocacy Groups EXCEPT
(D) Development Dualism
(A) Foundations
47. Payment made for the use of borrowed (B) IGO’s and NGO’s
money is called (C) Media
(A) Financial Institution (D) DTI

43. B 44. D 45. B 46. C 47. C 48. A 49. A 50. C 51. D 52. D
44 Chapter 1. ECONOMICS

53. During a beginning study of sociology, it is 58. They deal with money or with the produc-
appropriate to think of politics as the ex- tion and distribution of the goods and ser-
ercise of power and economics as the dis- vices in an economy.
tribution of (A) Nonstate Institutions
(A) society (B) Social Organizations
(B) behavior (C) Exchange System
(C) resources (D) Economic Institutions
(D) government
59. NAFTA is considered a trading bloc. The
54. Title Pawn Lenders and Payday Lenders MAIN aim is to
are referred to as because they prey (A) reduce poverty
on people who have bad credit and cannot (B) eliminate trading barriers among
secure a loan from a reputable financial in- member countries
stitution. (C) create a cartel
(A) Shysters (D) provide sustainable development for
(B) Predatory Lenders member states
(C) Bloodsuckers 60. Buyer and seller interact with one an-
(D) none of above other to exchange goods for an amount of
money.
55. Which of the following effects is the LEAST
LIKELY to occur from high levels of unem- (A) Exchange
ployment? (B) Purchase
(A) reduction in output levels in the econ- (C) Loans
omy (D) Barter
(B) increase in social cost like crime 61. The most common type of bank accounts
(C) increase in GDP are
(D) increase need for state support for (A) CDs and DDAs
welfare payments (B) Mutual Funds
56. Persons or institutions to whom money is (C) Money market accounts
owed (D) Savings & Checking accounts
(A) Financial Institutions 62. What is a large pool of money that several
(B) Interest people put together and that is usually in-
(C) Creditors vested in stocks and bonds and managed
(D) Collateral by a financial expert.
(A) mutual fund
57. Which of the following is not the objective (B) stock
of the WTO?
(C) bond
(A) To improve the standard of living of
(D) bitcoin
peoples of the member countries
(B) To enlarge production and trade of 63. Choose an aspect of economic institutions
goods (A) Helps to put criminals in jail
(C) To protect environment (B) Helps to cure diseases
(D) To improve the Balance of Payment (C) Helps to provide funds for families
situation of the member countries (D) none of above

53. C 54. B 55. C 56. C 57. D 58. D 59. B 60. B 61. D 62. A 63. C
1.4 Economic Institutions 45

64. The borrower gives the lender his/her au- (B) Banks
tomobile title in exchange for a set amount (C) Transnational Advocacy
of cash. (D) Development Bank of the Philippines
(A) Payday loan
(B) Title loan 70. Factors of production are owned by indi-
viduals rather than by the government
(C) Rent-to-own loan
(A) socialism
(D) none of above
(B) capitalism

NARAYAN CHANGDER
65. Which of the following currency has (C) communism
largest weightage in the determination of (D) anarchy
the value of the SDR?
(A) Yen 71. Which of the following country is not the
(B) USD member of the WTO?
(C) Euro (A) Iran
(D) British Pound (B) Azerbaijan
(C) Belarus
66. The forms of reciprocity are collectively (D) None of these
known as
(A) Reciprocity Categorization 72. Which of the following is not the objective
(B) Sahlin’s Codification of the IMF?
(C) Reciprocity Order (A) To ensure balanced international
trade
(D) Sahlin’s Typology
(B) To ensure exchange rate stability
67. Digicel and Megamart are both examples (C) To promote international monetary
of companies that are cooperation
(A) Public-owned (D) To provide loan to private sectors
(B) Private-owned
73. Which of the following currency is not in-
(C) both private and public owned cluded in the calculation of SDR value?
(D) none of above (A) INR
68. Which would be the best retirement sav- (B) Yen
ings option for a 40-year old engineer (C) USD
whose employer offers a five percent con- (D) Pound
tribution match?
(A) IRA 74. If all the top political and economic units
in the world were combined-and then the
(B) 401(k)
top 100 units were chosen-about what
(C) basic savings account percentage of the top 100 units would be
(D) money market account multinational corporations instead of coun-
tries?
69. The following are institutions that partici-
pate in international affairs and relations (A) 25%
but is not affiliated with any state or na- (B) 45%
tion EXCEPT (C) 75%
(A) Trade Unions (D) 95%

64. B 65. B 66. D 67. B 68. B 69. D 70. B 71. D 72. D 73. A 74. B 75. D
46 Chapter 1. ECONOMICS

75. Which of the following factor determines
the voting share of AIIB?
(A) Purchasing power parity
(B) Size of country’s economy
(C) Each country will have one vote with-
out veto power
(D) Both A & B
76. Which of the following statement is not
true about the WTO?
(A) WTO is a permanent organisation
(B) Uruguay round gave the birth to the
WTO
(C) WTO was officially constituted on 1
January 1991.
(D) Ministerial Conference is the highest
policy making body of the WTO
77. Any corporation that has factories and of-
fices in several countries
(A) multilingual
(B) multigenerational
(C) multimedia
(D) multinational
78. Rules and regulations clearly outline the
rights and obligations of those in power
(A) Traditional authority
(B) Rational-legal authority
(C) Charismatic authority
(D) Absolute authority
81. Who pays interest on a loan
(A) a lender
(B) a borrower
(C) a credit union
(D) a creditor
82. What is Mutual fund?
(A) An investment in which investors pool
their money to buy stock.
(B) An investment that you put in your
checking account
(C) Investment that you put in your swim-
ming pool.
(D) Investment that you put in the
ground.
83. a woman borrows money to buy a house.
If she does not repay the money the bank
loaned her the bank will take her house.
What is her house
(A) financial institution
(B) collateral
(C) budget
(D) interest
84. What did eighteenth-century Scottish so-
cial philosopher Adam Smith state was the
regulator of economy?
(A) self-interest
(B) mixed economic systems
(C) monopolies
(D) state-owned small businesses

79. Banks provide all of the following EXCEPT 85. Who is the current President of the World
Bank Group?
(A) debit cards
(A) Robert Zoellick
(B) loans
(B) Christine Lagarde
(C) check writing services (C) David Malpass
(D) government subsidies (D) Jim Yong Kim
80. Banks provide which of the following EX- 86. Which of the following is known as the
CEPT Paper Gold?
(A) debit cards (A) Demand Draft
(B) loans (B) USD
(C) check writing services (C) SDR
(D) government subsidies (D) Pound

76. C 77. D 78. B 79. D 80. D 81. B 82. A 83. B 84. A 85. C 86. C
1.4 Economic Institutions 47

87. Why World Bank was established? (B) Charging fees for their services
(A) None below (C) Collecting interest on loans
(B) To improve the adverse Balance of (D) Taking a percentage off of all deposits
Payment situation of the nonmember
93. “Give and Take”
countries
(A) Exchange
(C) To reconstruct the economies dam-
(B) Transfer
aged during the Second World War
(C) Reciprocity
(D) To promote the International Trade

NARAYAN CHANGDER
(D) Redistribution
88. It is used to describe an industry, organi- 94. Which is an example of a secondary-sector
zation, or business that is not owned by a job?
government.
(A) racher
(A) Private-owned
(B) bank teller
(B) Public-owned (C) real estate agent
(C) both private and public owned (D) steel factory worker
(D) none of above
95. A business organization that is owned by
89. What are high-risk loans? stockholders and treated by law as if it
(A) loans that are given for risky home were an individual person
properties (A) merger
(B) loans that are provided by commer- (B) stock option
cial banks (C) corporation
(C) loans that are given to consumers (D) trust
with bad credit
96. The environmental lobby best exemplifies
(D) loans that are invested in high-risk a(n)
stocks (A) public policy.
90. Who owns a credit union? (B) mass media influence
(A) its members (C) interest group
(B) investment bankers (D) power of the voting public
(C) the government 97. Which of the following institutions is not
(D) commercial banks part of the World Bank community?
(A) MIGA
91. system of roles and norms that governs (B) IBRD
the distribution and exercise of power in
(C) WTO
society
(D) IFC
(A) political institution
(B) economic institution 98. Which account is used for a fixed period
(C) family institution of time and allows restricted access to the
funds?
(D) religious institution
(A) Checking Account
92. Commercial banks earn money in all of the (B) Savings Account
following ways EXCEPT: (C) Money Market Deposit Account
(A) Investing in other companies (D) Certificate of Deposit

87. C 88. A 89. C 90. A 91. A 92. D 93. C 94. D 95. C 96. C 97. C 98. D
48 Chapter 1. ECONOMICS

99. established by a group of shareholders 104. All of the following are economic institu-
who have ownership in the corporation tions EXCEPT:
and is usually set up to make a profit and (A) Banks
provide a return to its shareholders. (B) Credit union
(A) Banks (C) Insurance Companies
(B) Corporations (D) Court
(C) IMF-World Bank
105. It is the institution that provides for the
(D) Cooperatives
production and distribution of goods and
100. refers to a system of economic ex- services, which people in every society
change involving the centralized collection need.
of goods (A) Markets and States
(A) reciprocity (B) Economy
(B) redistribution (C) Redistribution
(C) transfers (D) Transfers
(D) health 106. Where is the headquarter of the WTO?
101. What are two characteristics of a bank? (A) New York
(A) They are non-profit organizations (B) Geneva
owned by members. (C) Barcelona
(B) They pay profits to their shareholders (D) Paris
and can be used by anyone. 107. Which of the following is a for-profit
(C) They charge better interest rates on institution that offers numerous financial
loans and have low fees. services?
(D) Deposits are insured for $100, 000 by (A) commercial bank
the NCUA. (B) credit union
102. A change in ownership of an asset, or (C) school
a movement of funds and/or assets from (D) financial counselor
one account to another. 108. Tyler needs a place for his paycheck to
(A) Transfer be direct deposited, he knows he will not
(B) Balanced Reciprocity earn much interest and does not really like
(C) State-Market Relations being a member of anything. What would
(D) Banking be Tyler’s best choice?
(A) Credit Union
103. Which of the following statement is cor- (B) Bank
rect?
(C) Title Pawn
(A) Every member country of the IMF au-
(D) Payday Loan
tomatically becomes the member of the
World Bank 109. Which of the following body is not re-
(B) The World Bank has 45 founder mem- lated to the WTO?
bers (A) Dispute Settlement Body
(C) India is not the founding member of (B) Council of trade in goods
the World Bank (C) Exchange Rate Management Body
(D) IMF is the part of World Bank group (D) Trade Policy Review Body

99. B 100. B 101. B 102. A 103. A 104. D 105. B 106. B 107. A 108. B 109. C
 1.5 Economic Systems 49

110. What service offered by a bank involves (B) checking account

keeping valuables safe (other than just
money)? (C) safe-deposit box
(A) savings account (D) drive-through window

1.5 Economic Systems

1. The initiative to improve goods & services 5. One of the reasons that a country needs

NARAYAN CHANGDER
or create new ones is an economic system is because it:
(A) entrepreneurial resources (A) is independent of other nations.
(B) economics (B) has limited wants and needs.
(C) human resources (C) has a limited supply of resources.
(D) capital resources (D) has immigrants from several coun-
tries.
2. Which of the following BEST describes a
mixed economy? 6. An arrangement that allows buyers and
sellers to exchange things.
(A) An economy that overlaps with other
economic structures. (A) Frim
(B) Market
(B) An economy that follows traditional
customs. (C) Consumer Sovereignty
(C) An economy that does not overlap (D) Free Enterprise
with other economic structures. 7. Something that encourages a person to
(D) An economy that does not exist. take a certain action.
(A) Tax
3. Which basic economic question determines
how a society will produce goods and ser- (B) Entrepreneur
vices? (C) Incentive
(A) How can available resources be used (D) Specialization
efficiently?
8. What word best describes the advantage
(B) What goods and services are pro- of the command economy?
duced?
(A) profit
(C) What price should goods and services (B) equity
be sold at?
(C) ownership
(D) none of above
(D) entrepreneurship
4. Many, but not all, businesses are owned 9. All of the following are weaknesses of a
& controlled by the governmentIndividuals command economy EXCEPT that it
can own businesses, but the government
(A) can change direction drastically in a
controls most social services
short time.
(A) Mixed
(B) lacks the flexibility to deal with minor
(B) Command problems.
(C) Market (C) requires a large decision-making bu-
(D) Communist reaucracy.

110. C 1. A 2. A 3. A 4. A 5. C 6. B 7. C 8. B 9. A
50 Chapter 1. ECONOMICS

(D) provides few incentives for people to 15. When people want or need more of some-
work hard. thing than there is.
(A) Scarcity
10. The sacrifice that is made when a person (B) Profit
chooses between two goods or services.
(C) Opportunity Cost
(A) Profit (D) Tax
(B) Economics
16. Bring goods into the country
(C) Productivity
(A) import
(D) Opportunity Costs (B) export
11. The goods produced will be the same, gen- (C) distribution
eration after generation (D) production
(A) Mixed 17. Things that are needed to produce goods
(B) Market and services are called
(C) Command (A) Efficient use of resources
(B) Factors of production / resources
(D) Traditional
(C) Economic systems
12. Which trade barrier sets up a complete ban (D) Private property
on trading between countries? 18. Producers and consumers determine how
(A) mountain to use resources and make goods based on
(B) tariff supply and demand in the market, without
government interference.
(C) quota
(A) Market Economy
(D) embargo
(B) Traditional Economy
13. Business owners have complete control (C) Command Economy
over what they want to produce, how they (D) Mixed Economy
want to produce it, and who they want to
19. What are the three economic questions
sell it to in this economic system.
that every country’s economy must an-
(A) Traditional swer?
(B) Command (A) How to produce, when to produce,
(C) Market and why to produce?
(D) Mixed (B) What to produce, how to produce, and
for whom to produce?
14. Laissez-faire refers to (C) What is the price, what is the cost,
(A) very little government intervention in and what is the opportunity cost?
the economy (D) none of above
(B) a great deal of government interven- 20. An essential characteristic of a communist
tion in the economy economy is the-
(C) supporting the broad social goal of eq- (A) interaction of supply and demand
uity (B) organization of worker unions
(D) supporting the broad social goal of se- (C) privatization of business
curity (D) government ownership of property

10. D 11. D 12. D 13. C 14. A 15. A 16. A 17. B 18. A 19. B 20. D 21. C
1.5 Economic Systems 51

21. Which is the major feature of an economy (C) exports

based on subsistence farming? (D) a bad thing
(A) Most adults work outside the home
27. Which Economy has total control
(B) Farmers compete with each other
(A) Command
(C) Farmers raise just enough crops for (B) Traditional
their family to survive
(C) Mixed
(D) The government decides which crops
(D) Market
should be grown

NARAYAN CHANGDER
28. This studies how individuals and societies
22. The government controls the factors of seek to satisfy want & needs through
production in which type of economic sys- incentives, choices and allocation of re-
tem sources.
(A) Command (A) scarcity
(B) Mixed (B) economics
(C) Market (C) natural resources
(D) Traditional (D) capital resources
23. Which of the following is a characteristic 29. How many major economic questions are
of a command economy? there?
(A) Consumers have few, if any, choices (A) 1
in the market place. (B) 2
(B) Little government intervention. (C) 3
(C) Also, called “capitalist” economy (D) 4
(D) Resources are owned by individuals. 30. A farmer is assigned two cows and a
24. Which of the following is NOT one of the share of grazing land. All milk is sent to a
3 key economic questions: government-owned dairy.
(A) Communism
(A) Who consumes it?
(B) Capitalism
(B) How do we produce it?
(C) Socialism
(C) Is a hot dog a sandwich?
(D) none of above
(D) What do we produce?
31. Which type of economy is run by the busi-
25. Interdependence means nesses & business owners?
(A) One country depends on another (A) Command
(B) Two countries depend on another (B) Mixed
country (C) Communist
(C) Two countries economies rely on each (D) Market
other
32. Which of the countries below uses a So-
(D) Taxes are higher
cialist Economy?
26. The money flowing out of an economy is (A) USA
called (B) Cuba
(A) leakages (C) France
(B) injections (D) Afghanistan

22. A 23. A 24. C 25. C 26. A 27. A 28. B 29. C 30. A 31. D 32. C
52 Chapter 1. ECONOMICS

33. An economy that combines elements of 39. Businesses can produce goods how they
command and market economy is think the consumers will want them
(A) Market economy (A) Traditional
(B) Command economy (B) Mixed
(C) Traditional economy (C) Command
(D) Mixed economy (D) Market

34. Turkey, like most countries, has much eco- 40. The definition of Economics is the
nomic freedom with some government in- (A) Study of plants and animals in the
volvement. Which term describes this eco- economy
nomic system? (B) Study of how currency is printed.
(A) Market (C) Study of how resources are used to
(B) Mixed satisfy unlimited wants and needs
(C) Traditional (D) Study of socialism, capitalism, im-
(D) Command ports and exports.

35. Which of the following best describes the 41. Factors of Production are
Laissez-Faire approach to the economy? (A) Natural, Human, and Capital Re-
(A) Hands Off (leave it alone) sources
(B) Extreme Control (B) Human, Entrepreneurial, Capital, and
Natural resources
(C) Trust the Government
(C) Human and Capital Resources
(D) Strong regulations on businesses
(D) Only Human Resources
36. The United States is an example of a coun-
42. What do the economic systems of the UK,
try that has a
Germany and Russia all have in common?
(A) Traditional Economy
(A) mixed
(B) Free Market Economy (B) market
(C) Command Economy (C) command
(D) Mixed Economy (D) traditional
37. Farmers and hunters pass down their 43. An economic system that relies on habit,
skills to a younger generation in which custom, or ritual to decide the three key
economy? economic questions.
(A) Mixed (A) Traditional Economy
(B) Traditional (B) Command Economy
(C) Command (C) Market Economy
(D) None of these (D) Mixed Economy
38. Government planning groups make the ba- 44. What can cause a country to have a low
sic economic decisions. literacy rate?
(A) traditional (A) Uneducated citizens
(B) command (B) Lack of educational opportunity
(C) market (C) Lack of resources (poverty)
(D) mixed (D) all of these

33. D 34. B 35. A 36. D 37. B 38. B 39. D 40. C 41. B 42. A 43. A 44. D
45. B
1.5 Economic Systems 53

45. An economic system in which a free mar- 51. Competition and profit motive are impor-
ket prevails. tant characteristics of a:
(A) totalitarianism (A) command economy.
(B) capitalist system (B) market economy.
(C) democracy (C) traditional economy.
(D) socialism (D) socialist economy.
46. Since a this economy allows supply and 52. In this economic system, both private sec-

NARAYAN CHANGDER
demand, it ensures that the most desired tor and government direct the economy:
goods and services are produced. Which
advantage is this? (A) traditional
(A) Traditional (B) command
(B) Mixed (C) market
(C) Command (D) mixed
(D) Market
53. Jane wants to be a scientists, but her fam-
47. The doctrine that government generally ily have always been farmers, so she be-
should not intervene in the marketplace: comes a farmer
(A) laissez faire (A) Traditional
(B) self interest (B) Captialism
(C) economic transition (C) Socialism
(D) mixed economics (D) Communism

48. In this system, taxes are really high 54. Mary Ann runs a car dealership selling
(A) Communism only government produced cars. At the
(B) Capitalism end of the month Mary Ann must give all
of the money she made back to the gov-
(C) Socialism ernment.
(D) none of above
(A) Traditional
49. All of the following are NATURAL re- (B) Free Market
sources, except: (C) Mixed
(A) Treehouse (D) Command
(B) Flower
(C) Oil 55. In this section of the quiz, you are going
to read a statement about cows, and, us-
(D) Gold
ing the clues in the sentence, pick which
50. Which of the following is a problem with system it is describing:A farmer owns two
transitioning to capitalism? cows and sells the milk to a government-
owned dairy.
(A) It generates wealth.
(B) People have to adjust to incentives. (A) Communism
(C) There is an increase in GDP per capita. (B) Capitalism
(C) Socialism
(D) All of the above. (D) none of above

46. D 47. A 48. C 49. A 50. B 51. B 52. D 53. A 54. D 55. C 56. A
54 Chapter 1. ECONOMICS

56. A person who comes up with a product or 62. Which is an example of a CAPITAL re-
service, and finds the money and time to source?
produce this new product. (A) Tree
(A) Entrepreneur (B) Doctor
(B) Incentive (C) A chicken
(C) Specialization (D) Hammer
(D) Barter 63. An economy most similar to that of the
57. Which of the following is found in a mar- former Soviet Union
ket economy? (A) Sweden
(A) Free labor (B) Norway
(B) Competition between businesses (C) South Korea
(C) Government control of industry (D) North Korea
(D) Government control of agriculture 64. A supply & demand graph
(A) would show changes in a products de-
58. Advantages of this economic system is mand or supply.
that everyone is aware of resources & dis-
(B) is a visual representation of supply &
tribution, jobs, responsibilities are under-
demand.
stood and there is less destruction to the
environment. (C) can predict the performance of the
product over time.
(A) Command
(D) all of the answers are correct
(B) Mixed
(C) Market 65. Most democratic nations have
(D) Traditional economies.
(A) mixed
59. In my country my job is the same one that (B) traditional
my family has done over the past 200 (C) command
years.
(D) market
(A) Traditional
(B) Command 66. When private industry & government de-
cides how something is produced it is what
(C) Market
type of market?
(D) Mixed (A) Traditional
60. Level of economic prosperity. (B) Mixed
(A) Standard of Living (C) Command
(B) Economic System (D) Market
(C) Profit 67. Capitalism is most associated with which
(D) Self-Interest type of economy
(A) Free market with limited government
61. What resources did Mesopotamia have? intervention
(A) Barley and dates (B) Centrally planned economy
(B) Wheat and gold (C) Traditional economy
(C) Salt and fish (D) Centrally planned economy with lim-
(D) Flax and metal ited free market initiatives

57. B 58. D 59. A 60. A 61. A 62. D 63. D 64. D 65. A 66. B 67. A
1.5 Economic Systems 55

68. An economic system that allows individu- (B) Giving things to another country for
als to start businesses, but still has gov- free.
ernment regulations is (C) Purchasing things from another coun-
(A) Traditional try.
(B) Market (D) Getting things from another country.
(C) Command
74. What economic system involves everyone
(D) Mixed sharing the public good?

NARAYAN CHANGDER
69. Opportunity cost is (A) socialism
(A) the next best option (B) capitalism
(B) the invisible hand (C) communism
(C) the circular flow of income (D) none of above
(D) the cost of producing an item 75. Which economic system is based on cus-
toms and beliefs, people will do the same
70. Adam Smith’s concept of the invisible hand
work as their parents, and the exchange of
is best described as:
goods is through bartering (no money)?
(A) Interaction between buyers and sell-
(A) Traditional
ers
(B) Command
(B) The opposite of self interest
(C) Market
(C) The development of the division of la-
bor (D) Mixed
(D) The self-regulating nature of the mar- 76. Which economic system has the govern-
ket ment answer the three economic ques-
tions?
71. In this type of economic system, con-
sumers and producers make all economic (A) Traditional
decisions. (B) Mixed
(A) Traditional (C) Command
(B) Command (D) Market
(C) Market 77. Economic system found in rural, non-
(D) Mixed developed countries
72. A disadvantage to the Mixed Economy is (A) Market Economy
(A) a balance of needs & wants are met. (B) Command Economy
(B) citizens have to pay taxes. (C) Traditional Economy
(C) marketplace takes care of people’s (D) Mixed Economy
wants. 78. Bartering can be seen in which type of
(D) government takes care of people’s economy?
needs. (A) Command
73. Export (B) Market
(A) Selling things to another country for a (C) Mixed
profit. (D) Traditional

68. D 69. A 70. D 71. C 72. B 73. A 74. A 75. A 76. C 77. C 78. D 79. D
56 Chapter 1. ECONOMICS

79. A social and political philosophy based on 85. Which of the following countries has econ-
the belief that democratic means should be omy?
used to evenly distribute wealth through- (A) China
out a society. (B) United States
(A) Free Enterprise (C) both A and B
(B) Centrally Planned Economy
(D) Neither A nor b
(C) Communism
(D) Socialism 86. Business FREEDOM
(A) Command
80. Promotes a just and fair system
(B) Market
(A) freedom
(C) MIxed
(B) equity
(D) Traditional
(C) security
(D) growth 87. is the most basic economic problem.
(A) Scarcity
81. Supply and demand alone controls produc-
tion of goods and services? (B) Labor
(A) command economy (C) Greed
(B) communism (D) Capital
(C) pure market 88. In this type of economy, private indus-
(D) mixed market try alone decides how something is pro-
duced. The product is produced for the con-
82. This economic system is associated with sumers.
some government-run and some privately-
(A) Traditional
owned businesses.
(B) Market
(A) Traditional Economy
(C) Mixed
(B) Market Economy
(D) Command
(C) Command Economy
(D) Mixed Economy 89. An economic system in which the means of
planning, producing and distributing goods
83. This economic system is considered “prim- is controlled by a central government that
itive”: theoretically seeks a more just and equi-
(A) traditional table distribution of property and labor is
(B) command called:
(C) market (A) Socialism
(D) mixed (B) Communism
84. An advantage of this economic system (C) Democracy
is:that everyone knows which role to (D) Monarchy
play.
90. Producers determine supply. Consumers
(A) Traditional determine demand. Companies seek prof-
(B) Command its. Which economic system is described
(C) Capitalism/Market above?
(D) socialist (A) Traditional Economy

80. B 81. C 82. D 83. A 84. A 85. C 86. B 87. A 88. B 89. A 90. B
1.5 Economic Systems 57

(B) Free Enterprise Economy 96. GDP indicates the economy grew by
(C) Socialist Economy 3.5%
(D) Communist Economy (A) Economic Freedom
(B) Economic Stability
91. Which type of economy is based on tradi- (C) Economic Growth
tions and beliefs?
(D) Economic Productivity
(A) Command
(B) Market 97. Resources that can’t be replaced like oil,

NARAYAN CHANGDER
gold, and silver. Once they are taken out
(C) Traditional of the ground, they can’t grow back or be
(D) Mixed replaced.
(A) Human Resources
92. what is a trade barrier?
(B) Renewable Resources
(A) the level of a product’s quality that is
considered acceptable (C) Nonrenewable Resources
(B) a restraint on trade (D) Natural Resources
(C) A government order that limits trade 98. Which one of the following words de-
in some way. scribes traditional economy?
(D) The level of wealth, comfort, material (A) bartering
goods and necessities available (B) government makes all the decisions
(C) capitalism
93. Which of the economic systems is the least
popular today? (D) socialism
(A) traditional 99. If I choose to produce fish for my town
(B) command because my mom and dad were fisher-
(C) market men/women, what economic system is
this?
(D) mixed
(A) Mixed
94. What is a common phrase used in capital- (B) Market
ism? (C) Traditional
(A) freedom of the market (D) Command
(B) there’s nothing better than money
100. What is produced in this type of econ-
(C) survival of the fittest omy is determined by what consumers will
(D) taxation without representation buy.
(A) Traditional
95. In which economic system will you likely
see mothers and fathers showing their chil- (B) Command
dren how to perform tasks that benefit (C) Market
their community? (D) Mixed
(A) Mixed Economy
101. Which of the following is not true of a
(B) Market Economy Free Enterprise economy?
(C) Command Economy (A) Supply & demand controls the econ-
(D) Traditional Economy omy

91. C 92. B 93. A 94. C 95. D 96. C 97. C 98. A 99. C 100. D 101. D
58 Chapter 1. ECONOMICS

(B) the three economic questions are an- 107. Most socialist systems can also be de-
swered by consumers & sellers scribed as
(C) There is little government control of (A) planned economies.
business
(B) distribution economies.
(D) it was started by Karl Marx.
(C) pure economies.
102. Work done by producers for other people
is called a (D) mixed economies.
(A) good
(B) service 108. economic system characterized by a cen-
tral authority that makes most of the ma-
(C) favor
jor economic decisions with people having
(D) doing someone a solid
less power.
103. A system of government in which the (A) Traditional
people elect candidates to make policies
and laws for them.2. This is the type of (B) Command
government that the United States has. (C) Capitalism/market
(A) Direct Democracy (D) socialist
(B) Representative Democracy
(C) Monarchy 109. Government creates social security pro-
(D) Oligarchy gram to help protect the elderly from
poverty.
104. The government owns some major indus-
tries like railroads and uses democratic (A) Economic Equity
methods to distribute wealth more equi- (B) Economic Freedom
tably. Which political system is this?
(A) socialism (C) Economic Security
(B) capitalism (D) Economic Stability
(C) traditional
(D) communist 110. Items that are grown or made to be sold
or traded are called
105. The government controls the economic
system and does not allow private own- (A) goods
ership of the means of production and dis- (B) services
tribution in a economy.
(C) toys
(A) traditional
(D) entrepreneurs
(B) market
(C) socialist command
111. In a traditional economy, how are eco-
(D) communist command
nomic decisions made?
106. In which economic system is profit incen- (A) Custom & habit
tive to innovate?
(B) Government planners
(A) Mixed
(B) Market (C) Consumers & the market
(C) Command (D) Combination of consumers and gov-
(D) Traditional ernment planners

102. B 103. B 104. A 105. D 106. B 107. D 108. D 109. C 110. A 111. A 112. D
1.5 Economic Systems 59

112. An disadvantage of this economic system (C) government

is:giving up some of the individual freedom (D) the employees
to choose; most decision making belongs
to the government 118. Subsistence system
(A) Traditional (A) traditional economic system
(B) Command (B) communist command economic sys-
(C) Capitalism/Market tem
(D) socialist (C) socialist command economic system

NARAYAN CHANGDER
(D) market economy
113. This type of economy is run by a cen-
tral government or authority. Examples 119. Which of the following is NOT a branch
are:China, Cuba, France, Sweden of democratic governments?
(A) Command (A) Judicial branch
(B) Market (B) Executive branch
(C) Traditional (C) Legislative branch
(D) Socialist (D) Affirmative branch
114. Mr. Ross goes to the farmers market
120. Which statement about the reasons for-
every Friday, where he makes & sells his
gasoline’s inelastic demand is true?
steaks to people who come to his stand.
What kind of economic system is this? (A) Gasoline does not follow the law ofde-
mand.
(A) Command
(B) Gasoline has no close substitutes.
(B) Market
(C) Gasoline is a luxury for mosthouse-
(C) Mixed
holds.
(D) Traditional
(D) Gasoline takes a large part of theav-
115. Which of these is the main principle be- erage income.
hind a market economy?
121. Which of the following is the disadvan-
(A) supply and demand
tage for a market economy?
(B) barter and trade
(A) Some individuals needs may not be
(C) governmental control meet.
(D) none of the above (B) Little government intervention.
116. How do citizens influence laws in a demo- (C) Great variety of goods or services.
cratic government? (D) Price are determined by market
(A) Through business negotiations forces (supply and demand).
(B) Through taxes paid
122. SSEF4a Which type of economic system
(C) Through elected representatives would have the least amount of govern-
(D) Through supply and demand ment regulation?
117. In a command economy, most of the prop- (A) Traditional
erty is owned by whom? (B) Command
(A) entrepreneurs (C) Market
(B) wealthy aristocrats (D) Socialist

113. A 114. B 115. A 116. C 117. C 118. A 119. D 120. B 121. A 122. C
60 Chapter 1. ECONOMICS

123. A centrally planned economy promotes 128. What is the conversion of state owned
factories and other property to private
(A) Private property, profit, and competi- ownership?
tion (A) vouchers
(B) Government ownership, no competi- (B) collectivization
tion, and no profit (C) black market
(C) Government ownership, competition, (D) privatization
and no profit
129. What is an entrepreneur?
(D) Government ownership, profit, and (A) A person who starts a new business
no competition
(B) A leader of a country
124. Using goods and services by consumers (C) A worker in a factory
(A) production (D) A student in college
(B) consumption 130. This economic system is described as
(C) scarcity “the old way”.
(D) distribution (A) Command
(B) Market
125. An economic system in which the gov- (C) Traditional
ernment controls the factors of production (D) Mixed
and makes all of the economic decisions is
called: 131. What type of economic system allows
the government to decide what to pro-
(A) Socialism
duce, how to produce and for whom to pro-
(B) Democracy duce?
(C) Communism (A) Market
(D) Anarchy (B) Mixed
(C) Command
126. Based on habits, customs and beliefs
(D) Traditional
(A) Traditional economic system
(B) Command economic system 132. What did Adam Smith believe about eco-
nomic systems?
(C) Mixed economic system
(A) Karl Marx was right about societies
(D) Market economic system (B) Command Economy is the best
127. An disadvantage of this economic system (C) All societies should return to using
is:it does not provide for everyone. Some traditional economies
people may be too young, too old, or too (D) Economies work best when there is
sick to earn a living or to care for them- no government involvement
selves. These people would have difficulty
133. Which economy is dictated by supply and
surviving
demand and the buyers and sellers?
(A) Traditional (A) Market
(B) Command (B) Socilaism
(C) Capitalism/Market (C) Mixed
(D) socialist (D) Command

123. D 124. B 125. C 126. A 127. C 128. D 129. A 130. C 131. C 132. D 133. A
134. A
1.5 Economic Systems 61

134. A system for producing and distribut- (C) Command

ing goods, and services to fulfill people’s (D) Centrally Planned
wants
(A) Economy 140. This exists when wants exceed re-
sources available to satisfy those wants.
(B) Communism
(A) economics
(C) Politics
(B) market economy
(D) Distribution
(C) scarcity

NARAYAN CHANGDER
135. Basic economic problems exist because (D) mixed economy
of
141. Which of the following is one of the four
(A) needs. factors of production?
(B) capital resources. (A) Entrepreneurship
(C) scarcity. (B) Phones
(D) economic resources. (C) Technology
136. Which of the following is a potential (D) Wheat
problem in market economies? 142. People sell their crops in village markets
(A) No competition for items they need is an example of
(B) Total government control (A) Market
(C) Production quotas for businesses (B) Command
(D) Financial loss (C) Traditional
(D) Mixed
137. What can the three basic economic ques-
tions determine? 143. The United States is this type of system
(A) What kind of government a country (A) Mix of socialism and capitalism
has. (mixed economy)
(B) What kind of economic system a coun- (B) Purely capitalist
try has. (C) Purely socialist
(C) Whether or not most people live in (D) none of above
poverty.
(D) none of above 144. The way in which an economic system
answers the basic economic questions de-
138. A person who owns a business is called pends upon the country’s:
(A) supply.
(A) an entrepreneur (B) government.
(B) a representative (C) demand.
(C) an educator (D) products.
(D) none of above
145. The power of consumers to decide what
139. The Country of Korea, who has a dictator gets produced.
that makes most of the econmic decisions (A) Market
is what kind of economy? (B) Consumer Sovereignty
(A) Traditional (C) Command Economy
(B) Market (D) Specialization

135. C 136. D 137. B 138. A 139. C 140. C 141. A 142. C 143. A 144. B 145. B
146. C
62 Chapter 1. ECONOMICS

146. This economic system is based on individ- 152. This includes the customers & locations a
ual freedom. business wants to serve.
(A) Traditional (A) island
(B) Command (Communism) (B) market
(C) Free Market (C) supply
(D) none of above (D) area
153. What type of economic system is based
147. Socialism is a system that relies on the
cultural or religious beliefs and is often re-
use of
ferred to as a subsistence economy?
(A) Competition and Choice (A) Market economy
(B) Government Mandates (B) Traditional economy
(C) Wealth Redistribution (C) Mixed economy
(D) Customs and Beliefs (D) Command economy
148. Which type of economy is controlled by 154. Tax placed on an imported good
the government? (A) tariff
(A) Command (B) duty
(B) Market (C) import
(C) Mixed (D) export
(D) Democratic 155. In a traditional economy, information
about the way goods are produced is
149. Disadvantages of this economic system passed from one generation to the next by
are frequent shortages, lack of consumer the-
choice, lack of competition and lack of effi-
(A) family
ciency.
(B) legal system
(A) Traditional
(C) public schools
(B) Market
(D) government
(C) Mixed
(D) Command 156. An advantage of this economic system
is:that goods are usually privately owned,
150. Which type of economy has the govern- and privately owned goods last longer
ment making all decisions? than goods owned by others.
(A) Market (A) Traditional
(B) Mixed (B) Command
(C) Traditional (C) Capitalism/Market
(D) Mixed
(D) Command
157. An economic system in which business
151. Resources that are made by people to are allowed to produce any goods and ser-
make other things. vices they wish is referred to as
(A) Renewable Resources (A) A centrally planned economy
(B) Capital Resources (B) A pure market capitalist economy
(C) Human Resources (C) A mixed market capitalist economy
(D) Natural Resources (D) A socialist economy

147. C 148. A 149. D 150. D 151. B 152. B 153. B 154. A 155. A 156. C 157. B
158. A
1.5 Economic Systems 63

158. In which economic system does the gov- 163. An economic system in which individuals
ernment answer all three of the big eco- and businesses make decisions about what
nomic questions? (What to produce? How to produce.
to produce? For whom to produce?) (A) Market economy
(A) Command (B) Mixed economy
(B) Socialism (C) Communism
(C) Market (D) Command economy

NARAYAN CHANGDER
(D) Traditional 164. The government plans how to use re-
sources to make goods and services.
159. What type of economy is described be- (A) Market Economy
low:”the government tends to own major (B) Traditional Economy
industries like utilities, health care and ma-
(C) Command Economy
jor manufacturing industries; however, in-
dividuals own most small businesses.” (D) Mixed Economy
(A) Command 165. In this type of economy, the individual
(B) Mixed decides who to sell their products to:
(A) traditional.
(C) Market
(B) market.
(D) Traditional
(C) socialist.
160. How are goods and services exchanged (D) command.
in a traditional economy? 166. Which economic system has the least
(A) through prices and wages amount of government involvement in de-
(B) through government regulation cision making?
(C) through bartering (A) Mixed
(B) Market
(D) through shortages and surpluses
(C) Command
161. China, until the 1980’s-90’s was viewed (D) Traditional
as a planned economy, is now categorized
167. In which type of society would we most
as this economic system.
likely find a traditional economic system?
(A) Traditional Economy (A) a major city
(B) Market Economy (B) an established country
(C) Command Economy (C) rural and under-developed territory
(D) Mixed Economy (D) all of the above

162. Which of the following economic systems 168. Ms. Frank’s convenient store is the only
gives PEOPLE all the power in the econ- place that you can find AirPods. She has
omy? because she is the only store that sells
AirPods.
(A) market economy
(A) scarcity
(B) mixed economy (B) a traditional economy
(C) traditional economy (C) a market economy
(D) command economy (D) a monopoly

159. B 160. C 161. D 162. A 163. A 164. C 165. B 166. B 167. C 168. D 169. B
64 Chapter 1. ECONOMICS

169. How does a market economy work? 175. What do a republic and a direct democ-
(A) divide and conquer racy have in common?
(B) supply and demand (A) rule by a single political party
(C) hide and seek (B) a small group of leaders
(D) none of the above (C) rule by the people
(D) a single leader
170. is an example of a planned/command
economy. 176. A product of the earth that people use to
(A) Capitalism meet their needs is a
(B) Traditional (A) good
(C) Uniited States of America (B) natural resource
(D) Communism (C) free enterprise
(D) service
171. The government owns all industries,
with total control of production, supply & 177. When deciding “what to produce”, what
prices is said to be limited?
(A) Traditional (A) Population
(B) Market (B) Power
(C) Mixed
(C) Resources
(D) Command
(D) Water
172. Which is NOT one of the three basic eco-
178. If the Government decided what to
nomic questions?
goods to produce, what type of economy
(A) What will be produced? is shown?
(B) How will it be produced? (A) Command
(C) For whom will it be produced? (B) Traditional
(D) Why will it be produced? (C) Market
173. In a traditional economic system people (D) Mixed
usually exchange goods or services rather
than use money. Which of the following is 179. This economy is shaped by traditions,
an example of this exchange process? customs, and beliefs:
(A) Charging goods on a credit card (A) traditional
(B) Using currency to pay (B) command
(C) Bartering with a seller (C) market
(D) Paying for services by sell (D) mixed

174. What to produce, How to produce, and 180. In a command economy, who holds
for whom power over the economy?
(A) 3 economic questions (A) The people
(B) command economy (B) The government
(C) traditional economy (C) Beyonce
(D) continuum (D) The traditions of your ancesetors

170. D 171. D 172. D 173. C 174. A 175. C 176. B 177. C 178. A 179. A 180. B
181. C 182. A
1.5 Economic Systems 65

181. In economic terms, everyone is a 187. Government makes all economic deci-
(A) producer sions
(B) distributor (A) traditional economic system
(C) consumer (B) Communist command economic sys-
tem
(D) none of above
(C) socialist command economic system
182. The fact that buyers determine whether (D) market economy
any business succeeds or fails is called

NARAYAN CHANGDER
188. Government decides who produces, how
(A) Consumer Sovereignty things are produced and who the product
(B) Profit Motive is for in this economy.
(C) Competition (A) Command
(D) Freedom to Choose (B) Mixed
(C) Market
183. Another term for Socialism is:
(D) Traditional
(A) capitalism
(B) profit 189. Which of the three economic systems has
the most government involvement?
(C) Mixed Economy
(A) Market economy
(D) command economy
(B) Mixed economy
184. Why would one country place an em- (C) Command economy
bargo another? (D) Traditional economy
(A) Political differences
190. In this type of economic system, con-
(B) Lack of natural resources sumers and producers AND government
(C) Lack of transportation planners make economic decisions.
(D) Distance (A) Traditional
(B) Command
185. People can shop around and buy milk
(C) Market
from the store with the lowest price.
(D) Mixed
(A) Communism
(B) Capitalism 191. An economic system in which the state
(C) Socialism controls all property and capital, while
claiming that all goods are equally shared
(D) none of above by the people leading to equal social and
economic status is called
186. A weakness of this economy is its failure
to provide for the weak, the sick, the old (A) Socialism
and the very young who cannot be produc- (B) Democracy
tive. (C) Communism
(A) Traditional (D) Anarchy
(B) Command
192. The government controls that goods and
(C) Market services are equally distributed to the peo-
(D) none of above ple

183. C 184. A 185. B 186. C 187. B 188. A 189. C 190. D 191. C 192. A 193. A
66 Chapter 1. ECONOMICS

(A) Command 198. In my country, the government has some

(B) Traditional involvement in the economy.
(C) Market (A) Traditional
(B) Command
(D) Mixed
(C) Market
193. An example of a government owned re- (D) Mixed
source is
199. Free enterprise and free trade zone
(A) postal system
match
(B) grocery store chain (A) traditional
(C) restaurant (B) command
(D) none of above (C) market
(D) mixed
194. In this economic system, jobs are handed
down generation to generation. 200. Who ultimately makes the decisions in a
(A) Traditional market capitalist economy?
(B) Command (A) The government
(C) Market (B) Businesses
(C) Consumers
(D) Mixed
(D) Voters
195. Because of a terrible milk shortage, the
201. I had some money after paying all ex-
government takes control of the dairy in-
penses. I was able to make a(n)
dustry and sets milk prices.
(A) investment
(A) Communism
(B) profit
(B) Capitalism
(C) good decision
(C) Socialism (D) great business
(D) none of above
202. Who developed laissez-faire economics
196. Which of the following is an economic as a en economic philosophy?
system in which the government and in- (A) Adam Smith
dividuals are used to decide how to use (B) Karl Marx
scarce resources? (C) John Locke
(A) Market economy (D) Louis XVI
(B) Command economy
203. What is one basic question of eco-
(C) Traditional economy
nomics?
(D) Mixed economy (A) What goods and services are pro-
duced?
197. Most common type of economy in the
world today (B) Who acquires the means to which
goods and services are traded?
(A) Mixed
(C) What resources are available for
(B) Command goods and services?
(C) Market (D) What is the opportunity cost on goods
(D) Traditional and services?

194. A 195. C 196. D 197. A 198. D 199. C 200. C 201. B 202. A 203. A 204. B
1.5 Economic Systems 67

204. Capitalism flourishes here in this eco- (B) capitalism.

nomic system. (C) socialism.
(A) Traditional (D) entrepreneurship.
(B) Market
210. Most countries in the world have a
(C) Command economy.
(D) Mixed (A) Traditional
(B) Command
205. What is an example of a physical trade

NARAYAN CHANGDER
barrier? (C) Mixed
(A) quota (D) Market
(B) tariff 211. China is now categorized as this eco-
(C) mountain nomic system.
(D) embargo (A) Traditional Economy
(B) Market Economy
206. Which economic system most values (C) Command Economy
freedom? (D) Mixed Economy
(A) Traditional
(B) Mixed 212. A market economy has ownership of
property and resources.
(C) Free Market
(A) private
(D) Command
(B) government
207. What is the best way to describe a tra- (C) tribal
ditional economy? (D) none of above
(A) One person runs the thing and has all 213. North Korea has this system, character-
control ized as having little or no market competi-
(B) Everything gets passed down, from tion.
one generation to the next (A) Traditional Economy
(C) One person runs the business, but (B) Market Economy
they have a set of rules they have to fol- (C) Command Economy
low in order to make it work.
(D) Mixed Economy
(D) none of above
214. In a market economy, if your mom and
208. Communist command economies are dad are both teachers, do you have to be
most likely to experience which of the fol- a teacher?
lowing problems? (A) Yes
(A) Shortage of capital investment (B) No
(B) Surplus of consumer goods (C) Maybe
(C) Poor quality products (D) none of above
(D) High income taxes
215. Let it be
209. Government owns the basic means of (A) Hats off
production, but there is some private own- (B) Hands around
ership of businesses under: (C) Hands off
(A) communism. (D) Hands on

205. C 206. C 207. B 208. C 209. C 210. C 211. D 212. A 213. C 214. B 215. C
68 Chapter 1. ECONOMICS

216. Economics seeks the answer to the basic (C) Command

question of how to deal with (D) Traditional
(A) money
222. If there people who want the goods
(B) hunger
available, there is a
(C) demand
(A) aren’t many, high demand
(D) scarcity
(B) many, low demand
217. Which of the following is an economic (C) aren’t many, low demand
system in which a central, governmental (D) none of above
authority decides how to use a country’s
scarce resource? 223. How many economic systems are there?
(A) Market (A) 2
(B) Mixed (B) 3
(C) Traditional (C) 4
(D) Command (D) 5

218. A country that currently has a communist 224. If the buyer has a choice about what he
command economic system is: or she wants to buy, we say they are a
(A) Japan. part of a
(B) Denmark. (A) goods
(B) services
(C) North Korea.
(C) scarcity
(D) India.
(D) free market economy
219. An economy that has both command and
market principles in place to determine 225. Which of the following may be an exam-
what is produced, distributed and con- ple of a need?
sumed. (A) A Ferrari
(A) Mixed (B) Medication
(B) Market (C) Netflix
(C) Command (D) An iPhone
(D) Traditional 226. The knowledge, efforts, and skills peo-
220. Communist countries have what type of ple bring to their work, also known as la-
economic system? bor.
(A) Market (A) capital resources
(B) Mixed (B) economics
(C) Command (C) human resources
(D) Traditional (D) entrepreneurial resources

221. Disadvantages of this economic system 227. Anyone who buys a good or service.
are environmental damage & poor work- (A) Barter
ing conditions. (B) Loss
(A) Market (C) Consumer
(B) Mixed (D) Producer

216. D 217. D 218. C 219. A 220. C 221. A 222. C 223. C 224. D 225. B 226. C
227. C 228. A
1.5 Economic Systems 69

228. In this type of economy, my job is the 234. Which provides the greatest incentive
same one that my family has done over for entrepreneurs to take risks?
the past 200 years. (A) prices
(A) Traditional (B) inflation
(B) Command (C) profits
(C) Market (D) interest
(D) Mixed 235. Ms. Hargrove is in charge of running a

NARAYAN CHANGDER
shoe store that is owned by the govern-
229. Which type of economic system is the
ment. She does not receive any of the
U.S., Brazil, and the U.K.?
profit and she makes the same amount as
(A) Traditional everyone else.
(B) Command (A) Capitalism
(C) Market (B) Socialism
(D) Mixed (C) Communism
(D) none of above
230. Which of the following concepts/terms
is NOT associated with Capitalism? 236. Which quote best identifies with capital-
(A) Market Economy ism?
(B) Supply and Demand (A) “Sharing is caring”
(B) “Get rich or die trying”
(C) Freedom of Competition
(C) “Government first”
(D) Classless Society
(D) “Never talk back to authority”
231. An economic system where resources are 237. In my country, the government makes all
primarily controlled by the private sector the economic decisions.
(A) Command Economy (A) Traditional
(B) Free Market Economy (B) Command
(C) Mixed Economy (C) Market
(D) Traditional Economy (D) Mixed

232. The farmer decides to sell the milk at his 238. Which of the following is NOT one of the
roadside stand. basic questions that all economic systems
(A) Communism must answer:
(A) What to produce
(B) Capitalism
(B) How to produce
(C) Socialism
(C) How much to produce
(D) none of above
(D) For whom to produce
233. Welfare state 239. Which economic system is based on Cus-
(A) traditional economic system toms and Beliefs?
(B) communist command economic sys- (A) Traditional
tem (B) Command
(C) socialist command economic system (C) Market
(D) market economy (D) Mixed

229. D 230. D 231. B 232. B 233. C 234. C 235. C 236. B 237. B 238. C 239. A
240. B
70 Chapter 1. ECONOMICS

240. Supply and demand of goods and ser- (B) Consumer Sovereignty
vices determines the price in which eco- (C) Profit Motive
nomic system?
(D) Voluntary exchange
(A) Traditional Economy
(B) Market Economy 246. Which type of economy has central own-
(C) Command Economy ership and lack of individual choice?
(D) Mixed Economy (A) Market Economy
(B) Mixed Economy
241. Which type of economy allows for indi- (C) Command Economy
viduals and businesses to make a profit?
(D) Traditional Economy
(A) Mixed
(B) Command 247. A economy is completely determined
(C) Market and controlled by a central planning au-
thority or the government
(D) Traditional
(A) Traditional
242. Money that the government collects (B) Planned/Command
from individuals and businesses to pay for
(C) Mixed
public goods and services
(D) Free Market
(A) Profit
(B) Tax 248. Who owns everything in a communist
(C) Service style economic system?
(D) Loss (A) The wealthy
(B) The police
243. Physical products that are produced to be
sold (C) The state/government
(A) Goods (D) The poor
(B) Services 249. Why do different types of economic sys-
(C) Consumers tems exist?
(D) Economy (A) To provide a way for society to pro-
duce and distribute goods and services.
244. An economic system in which both the
government and individuals play impor- (B) To enable countries to maximize effi-
tant roles in production and consumption ciency of resources
is a economy. (C) To secure basic needs to the people
(A) mixed (D) To provide competition among vari-
(B) market ous economic systems
(C) command 250. is the economic system in which cit-
(D) traditional izens instead of the government make
most economic decisions.
245. Individuals can do whatever they like to
(A) capitalism
their property as long as it does not harm
others. Provides the incentive to work (B) human capital
and own items (C) profit motive
(A) Private Property Rights (D) voluntary exchange

241. C 242. B 243. A 244. A 245. A 246. C 247. B 248. C 249. A 250. A 251. C
1.5 Economic Systems 71

251. A building is an example of which eco- 257. Businesses have freedom to produce
nomic resource? whatever they think consumers will buy
(A) Natural (A) Market
(B) Human (B) Command
(C) Capital (C) Mixed
(D) I need more information. (D) Traditional

252. Economic system where the government 258. When the federal government decides to

NARAYAN CHANGDER
controls everything, everyone is supposed pay senators more than it pays soldiers, it
to be equal. answers the question.
(A) Communism (A) why
(B) Capitalism (B) how
(C) Socialism (C) for whom
(D) none of above (D) what

253. In this type of economy, property and 259. Choose the correct examples of a ter-
businesses are owned by the govern- tiary activity.
ment. (A) truck driver, doctor, store clerk,
(A) Traditional restaurant
(B) Command (B) manufacturing and construction
(C) Market (C) mining, agriculture, fishing
(D) Mixed (D) research and data processing

254. Both supply and demand and the govern- 260. limited amount of something
ment influence how resources are used to (A) bountiful
make goods and services. (B) plentiful
(A) Market Economy (C) abundance
(B) Traditional Economy (D) scarcity
(C) Command Economy
(D) Mixed Economy 261. When a government decides to increase
a tariff, it increases the amount of a tax
255. This economic system is controlled by the placed upon
government. (A) people’s income
(A) Traditional (B) imported goods
(B) Command (Communism) (C) renewable resources
(C) Free Market (D) people’s property
(D) none of above
262. How are economics used in the nation?
256. This system is associated with the ideas (A) Provide people with minimum re-
of Adam Smith and capitalism. sources
(A) Traditional Economy (B) To make money
(B) Market Economy (C) They are used to determine how to
(C) Command Economy use their limited resources
(D) Mixed Economy (D) none of above

252. A 253. B 254. D 255. B 256. B 257. A 258. C 259. A 260. D 261. B 262. C
263. B
72 Chapter 1. ECONOMICS

263. Which type of economy does not always (B) Free Enterprise
use money? (C) Command Economy
(A) Market (D) Mixed Economy
(B) Traditional
269. If my government is selling me bread for
(C) Command
$5 a loaf, and I have no choice but to buy
(D) Mixed that type of bread, I live in a econ-
264. In this economic system, a central author- omy.
ity makes plans regarding investment and (A) Traditional
production: (B) Command
(A) traditional (C) Market
(B) command (D) Mixed
(C) market
270. Who or what answers the basic economic
(D) mixed questions in a free market economy?
265. In this economic system, previous gener- (A) Individuals and Businesses
ations and traditions determine what and (B) Government
how things are produced. (C) Custom
(A) Markey (D) Individuals, Businesses, and Govern-
(B) Mixed ment
(C) Command
271. Capitalism is most closely related to
(D) Traditional which type of economic system?
266. In which type of economic system do (A) Command
business owners control the factors of pro- (B) Traditional
duction? (C) Free Enterprise
(A) Free Enterprise (D) Mixed
(B) Communist
272. Sarah would like to become a doctor
(C) Socialist when she grows up. Unfortunately, she
(D) none of above lives in a country where her job will be de-
cided for her by the government.
267. what is the law of supply and demand?
(A) Traditional
(A) one person supplies and the other de-
mands (B) Free Market
(B) when consumers want higher prices (C) Mixed
but producers want lower prices (D) Command
(C) every action has an equal opposite re- 273. government in which one person or a
action small group of people rule the country by
(D) when consumers want lower prices force
but producers want higher prices (A) traditional economy
268. Government controls or dictates what is (B) communism
produced in this economic system (C) deomocracy
(A) Traditional Economy (D) dictatorship

264. B 265. D 266. A 267. D 268. C 269. B 270. A 271. C 272. D 273. D 274. A
1.5 Economic Systems 73

274. In a command economic system, who (B) supply and demand dictate price and
makes decisions on cost and ownership? production
(A) the government (C) competition between businesses is
(B) the community discouraged
(C) buyers and sellers (D) none of above
(D) none of the above
280. In this type of economic system, govern-
275. Free copetition ment planners make all economic decisions

NARAYAN CHANGDER
(A) Traditional economic system (A) Traditional
(B) Command economic system (B) Command
(C) Mixed economic system (C) Market
(D) Market economic system (D) Mixed

276. In a market economy, who has the least 281. Which economic system promotes compe-
influence over how economic resources are tition?
allocated? (A) Communism
(A) The government
(B) Capitalism
(B) Consumers
(C) Socialism
(C) Businesses/Producers
(D) none of above
(D) None of the above
282. Individuals and businesses own the
277. The phrase “profit is the incentive for
means of production
business” means that profit
(A) Traditional economic system
(A) Provides a strong reason to reduce in-
vestment (B) Command economic system
(B) Reduces the need for efficient use of (C) Mixed economic system
resources (D) Market economic system
(C) Provides a reward for the risk and ef-
fort involved 283. economic system based on traditions and
social customs
(D) Provides the incentive to increase ex-
penses (A) economic system
(B) traditional
278. What type of economic system is used in
the United States? (C) supply and demand
(A) Market (D) market
(B) Socialist Command 284. Russia’s economy has moved away from
(C) Traditional command towards market since the Soviet
(D) Communist Command Union collapsed in
(A) 1917
279. which of the following is not a character-
istic of a market economy? (B) 1922
(A) profit is the motivation for most busi- (C) 1991
nesses (D) 2002

275. D 276. A 277. C 278. A 279. C 280. B 281. B 282. D 283. B 284. C 285. D
74 Chapter 1. ECONOMICS

285. An economic system in which private 291. I will have the same job as my parents
property is almost totally restricted is and grandparents did
called (A) Traditional
(A) A mixed economy (B) market
(B) Competition (C) Command
(C) Free enterprise (D) Mixed
(D) A planned socialist economy
292. This type of economic system is based on
286. This economy is based on customs and customs and habits of the past.
traditions. (A) Traditional
(A) A market economy (B) Market
(B) A command economy (C) Command
(C) A mixed economy (D) Mixed
(D) A traditional economy 293. A society’s shortage of resources is
called ?
287. High taxes
(A) Scarcity
(A) Traditional economic system (B) Surplus
(B) Command economic system (C) Resources
(C) Mixed economic system (D) Opportunity Cost
(D) Market economic system
294. What could be a disadvantage for one
288. What is one way a government with- who follows a traditional economy
draws money from the circular flow of a (A) little equality
market? (B) little scientific development/ innova-
(A) Payroll tion
(B) Purchasing Equipment (C) unlimited natural resources
(C) They never do (D) no disadvantages available
(D) Taxes 295. Which of the following allows anyone to
289. Which of the following cultures has a tra- open any business you want within some
ditional economic system? government laws?
(A) Right to Private Property
(A) Amazon Rain Forest Communities
(B) Freedom to Choose
(B) Villages in the Rocky Mountains
(C) Competition
(C) Rural areas in Denmark
(D) Consumer Sovereignty
(D) The Republic of Cuba
296. Among the advantages of this economic
290. When the product is created for govern- system are higher competition and free-
ment it is what type of economic system? dom of choice.
(A) Traditional (A) Command
(B) Mixed (B) Market
(C) Market (C) Mixed
(D) Command (D) Traditional

286. D 287. C 288. D 289. A 290. D 291. A 292. A 293. A 294. B 295. B 296. B
297. A
1.5 Economic Systems 75

297. What are the three economic questions?
(A) What to produce? How to produce?
For whom to produce?
(B) Who to produce? Why you produce?
Like to produce?
(C) Why to produce? Tell who to pro-
duce? Things to produce?
(D) none of above
(C) market economy
(D) all of the above
303. Which of the following best describes the
primary role of an economic system?
(A) The response to market failure
(B) To address equity concerns to im-
prove fairness

NARAYAN CHANGDER
298. Who is the considered to be the father of (C) To determine the allocation of limited
Communism? resources
(A) Adam Smith (D) To protect domestic producers from
(B) Thomas Hobbes foreign competition
(C) Karl Marx
304. The government exercises the MOST con-
(D) John Locke trol in which economic system?
299. Resources that can be replaced or re- (A) Capitalism
newed like wood, plastic, and rubber. (B) Mixed Market
(A) Human Resources
(C) Communism
(B) Renewable Resources
(D) Socialism
(C) Nonrenewable Resources
(D) Capital Resources 305. What kind of economic system does U.S
have?
300. Katia is an accountant in a government
run business where she was placed after (A) Traditional
graduation. (B) Mixed
(A) Command (C) Market
(B) Traditional (D) Command
(C) Free Market
(D) Mixed 306. Think Money!

301. A disadvantage of this economic system (A) Traditional

is that regulation and support are inconsis- (B) Government
tent and can slow economic growth. (C) Economy
(A) Mixed (D) Command
(B) Command
(C) Market 307. Under which economic system does the
(D) Traditional government make almost all of the eco-
nomic decisions?
302. In theory which type of economic sys- (A) Command
tem should not experience market fluctu-
ations. (B) Market
(A) command economy (C) Traditional
(B) mixed economy (D) Capitalist

298. C 299. B 300. A 301. A 302. A 303. C 304. C 305. B 306. C 307. A 308. A
76 Chapter 1. ECONOMICS

308. The four types of economic systems are: (B) Profit

(A) Traditional, Command, Mixed, & Mar- (C) Opportunity Cost
ket
(D) Tax
(B) Traditional, Command, Combined, &
Market 314. In my country, the government controls
(C) Communism, Capitalism, Free Mar- the economy. It assigns jobs, sets produc-
ket, and Macroeconomics tion goals, and decides wages.
(D) Microeconomics, Macroeconomics, (A) Traditional
Individual, and Traditional.
(B) Command
309. Economic system that relies on habit, cus- (C) Market
tom, or ritual to decide questions of pro- (D) Mixed
duction and consumption of goods and ser-
vices. 315. Where did Karl Marx predict a revolution
(A) Market Economy of the proletariat would occur first?
(B) Traditional Economy (A) industrial Europe
(C) Centrally Planned Economy (B) independent Latin America
(D) Mixed Economy
(C) colonial Africa
310. what is competition? (D) agricultural Russia
(A) a rivalry between companies selling
similar items 316. What is the quality of life based on the
(B) best friends possession of the necessities and luxuries
that make life easier called?
(C) one company is the only one selling
the item (A) scarcity
(D) companies improving their stock (B) capital
(C) standard of living
311. The government decides how products
will be made (D) value
(A) Mixed
317. An economy mostly consisting of subsis-
(B) Command tence agriculture.
(C) Market
(A) Command
(D) Traditional
(B) Free
312. An expectation that encourages people (C) Mixed
to behave in a certain way.
(D) Traditional
(A) Self-Interest
(B) Incentive 318. The most common medium of exchange
(C) Competition in modern economic systems is:
(D) Profit (A) barter.
(B) capital.
313. :when people want or need more of
something than there is. (C) credit.
(A) Scarcity (D) money.

309. B 310. A 311. B 312. B 313. A 314. B 315. A 316. C 317. D 318. D 319. D
1.5 Economic Systems 77

319. What type of economy is most suscepti- (B) government would take over
ble to natural disasters? (C) specialization would increase
(A) Command (D) there would be no need for markets
(B) Free Market to purchase goods and services
(C) Mixed
325. Demand is how many people want the
(D) Traditional goods that are available. If people
320. A situation that occurs when two or want the goods available, there is

NARAYAN CHANGDER
more businesses try to sell the same type (A) many, high demand
of product to the same customers is re- (B) aren’t many, high demand
ferred to as (C) aren’t many, low demand
(A) Competition (D) many, low demand
(B) Factors of production
326. How will scarcity of a capital good im-
(C) Consumer goods
pact price?
(D) Free enterprise
(A) Price would go up
321. Which of the following types of economic (B) Price would go down
systems adopts the fewest new ideas or (C) Price would stay the same
improvements? (D) You wouldn’t sell any
(A) Command
(B) Socialist Command 327. SSEF4 Jingo was born to be a warrior-
hunter, Jingo trades the furs of animals
(C) Market
he catches to other families and tribes for
(D) Traditional many goods. What economic system is
this?
322. Which of these signals and incentives
doshortages provide? (A) Market
(A) It is a good time for consumers tobuy (B) Command
as prices fall. (C) Traditional
(B) It is a good time for producers toraise (D) Capitalist
prices.
328. Joe owns a shoe store. At the end of
(C) It is time for producers to leave the- the month Joe decides what to do with his
market. profits.
(D) Prices are too high relative tocon- (A) Command
sumer demand.
(B) Free Market
323. Government sets production quotas (C) Traditional
(A) Traditional economic system (D) none of above
(B) Command economic system
329. Fascism is based on which of the follow-
(C) Mixed economic system ing?
(D) Market economic system (A) Idealistic goals
324. What would result if everyone became (B) Freedom of religion
self-sufficient? (C) Economic equality
(A) a command economy would form (D) Discrimination

320. A 321. D 322. B 323. B 324. D 325. A 326. A 327. C 328. B 329. A 330. B
78 Chapter 1. ECONOMICS

330. An economic system is a society’s system 336. The amount of money a business pays for
of production, distribution and consump- the products it sells or for the raw materi-
tion of als from which it produces goods to sell
(A) natural resources (A) Cost of Goods
(B) goods and services (B) Profit
(C) stocks and bonds (C) Expenses
(D) factors of production (D) Income
331. This economic system offers a variety of 337. North Korea has what type of Economic
goods and services because new ideas are System?
encouraged. (A) Command
(A) Traditional (B) Mixed
(B) Command (C) Market
(C) Market (D) Traditional
(D) none of above
338. The goods produced are made for myself
332. When someone or a business chooses to and my neighbors
specialize or produce certain items. (A) Mixed
(A) Entrepreneur
(B) Command
(B) Economics
(C) Traditional
(C) Voluntary Exchange
(D) Market
(D) Specialization
339. In this type of economy, the govern-
333. In which type of economic system does ment and the market decide what is pro-
the government plays a limited role? duced. The product is produced for the con-
(A) Free Enterprise sumers.
(B) Communist (A) Mixed
(C) Socialist (B) Market
(D) none of above (C) Command
334. Economic decisions are decided entirely (D) Traditional
by the government in which economic sys- 340. In this economy individuals have prop-
tem? erty rights, producers have competition
(A) Socialism and there are monetary incentives to per-
(B) Communism form at a higher level.
(C) Mixed (A) Communist Economy
(D) Free enterprise (B) Market Economy
335. Extreme love for your country is the def- (C) Socialist Economy
inition of (D) Traditional Economy
(A) Socialism 341. Ted is working towards his dream of be-
(B) Capitalism coming a lawyer by working at a law firm
(C) Nationalism as a legal clerk.
(D) Fascism (A) Free Market

331. C 332. D 333. A 334. B 335. C 336. A 337. A 338. C 339. A 340. B 341. A
342. A
1.5 Economic Systems 79

(B) Traditional 347. The closest thing to a command economy

(C) Command today exists in:
(D) none of above (A) Soviet Union
(B) Czechoslovakia
342. What is a DISADVANTAGE of a market
(C) North Korea
economy?
(D) South Korea
(A) businesses face uncertainty
(B) variety of goods and services 348. In which economic system is the protec-

NARAYAN CHANGDER
(C) Individual freedom tion of private property rights essential?
(D) Lack of government interference (A) Command
(B) Traditional
343. “Innovations are normally the creation
(C) Market
of business people.” Joseph Schumpter,
(D) Socialism
Economic Theorist, (1911) With which
economic theory would Joseph Schumpter 349. Economies where people produce what
likely have agreed? they need to survive.
(A) socialism (A) traditional
(B) traditionalism (B) command
(C) capitalism (C) market
(D) communism (D) mixed
344. Which of the following is true? 350. What influence does the government
(A) Economic freedom is most limited in a have in a market economy?
market economy. (A) they have limited control of the as-
(B) Competition is a key factor in all the pects of the economy
economies. (B) they have no control of any aspects of
(C) Central authority is strongest in a the economy
command economy. (C) they are forced to keep out of eco-
(D) The profit motive drives all busi- nomic affairs
nesses in a traditional economy. (D) both B and C
345. Which economic system is both market 351. The government determines the number
and command combined and most demo- of gallons of milk it wants each year and
cratic countries fall into this category? gives production goals to farmers
(A) Traditional (A) Communism
(B) Command (B) Capitalism
(C) Market (C) Socialism
(D) Mixed (D) none of above
346. Which of the following can be classified 352. Most democratic countries today have
as a mixed economy? which economic system?
(A) USA (A) Traditional
(B) Cuba (B) Market
(C) North Korea (C) Command
(D) Soviet Union (D) Mixed

343. C 344. C 345. D 346. A 347. C 348. C 349. A 350. A 351. A 352. D 353. B
80 Chapter 1. ECONOMICS

353. , In my country, the government tells me (C) they assign jobs based on test scores
where to work.
(A) Traditional (D) all of the above
(B) Command 359. An economic system that has some gov-
(C) Market ernment restrictions on the actions of indi-
(D) Mixed viduals and businesses is called
(A) A mixed market capitalist economy
354. In a command economy decisions about
(B) Factors of production
what, how, and for whom to produce are
determined by (C) A centrally planned economy
(A) the government (D) Free enterprise
(B) supply and demand 360. The production, distribution, and con-
(C) cultural traditions sumption of goods and services.
(D) none of above (A) Government
(B) Economics
355. Which economic system is controlled by (C) Geography
supply and demand and the buyers and
(D) History
sellers (the people)?
(A) Market 361. What are capital resources?
(B) Socilaism (A) Things from nature used to produce
goods
(C) Mixed
(B) People used to produce goods
(D) Command
(C) Machines, tools, and buildings used to
356. Promotes wise decision making when us- produce goods
ing resources (D) none of above
(A) stability
362. According to the normal relationship, if
(B) freedomfreedom Iran decided to invest several billion dol-
(C) efficiency lars in education and training how would
(D) security their GDP likely be affected?
(A) It would descrease
357. Which of the following is an economic
(B) It would not change
system in which the government and indi-
viduals decide how to use resources? (C) It would increase
(D) It would depend on other factors
(A) Market economy
(B) Command economy 363. An economic system in which, in its pure
(C) Traditional economy form, all property such as farms, factories,
homes are owned by the government for
(D) Mixed economy
the benefit of all citizens. The central gov-
358. What are some negative effects of the ernment essentially controls all aspects of
traditional economy? citizens’ lives.
(A) they are always choosing new ideas (A) Capitalism
and technologies (B) Communism
(B) they are inefficient in providing goods (C) Socialism
and services to the society (D) none of above

354. A 355. A 356. C 357. D 358. B 359. A 360. B 361. C 362. C 363. B 364. B
1.5 Economic Systems 81

364. Which of the following items is found in 370. In its pure form, consumers have no role
all economic systems? in economic decision-making.
(A) Technology (A) Traditional
(B) Participants (B) Command
(C) Subsistence
(C) Market
(D) Dollars
(D) Mixed
365. Which of the following is an economic

NARAYAN CHANGDER
system in which the government also pro- 371. The money that remains after all the
vides many health and welfare benefits, costs of production have been paid.
such as healthcare, housing, and unemploy- (A) Loss
ment?
(B) Supply
(A) Free Enterprise
(C) Profit
(B) Communist
(C) Socialist (D) Tax
(D) none of above
372. Economics decisions are based on cus-
366. Which type of economic systems does toms and centered around family in which
Cuba and North Korea have? economic system?
(A) Traditional (A) Traditional Economy
(B) Command (B) Command Economy
(C) Market (C) Market Economy
(D) Mixed (D) Mixed Economy
367. Which of the following is NOT a func-
tion of the government in a command econ- 373. Once an economic system is established,
omy? what can or cannot be done?
(A) regulating demand (A) the basic economic questions can be
(B) regulating supply answered
(C) regulation distribution (B) resources can no longer be produced
(D) regulating international trade
(C) government can take over the soci-
368. Help to protect people from unexpected ety’s economy
events
(D) laissez faire economics can begin
(A) stability
(B) growth 374. Four types of economic systems:
(C) equity
(A) Traditional, command, market, mixed
(D) security
369. All modern societies have a econ- (B) Traditional, command, combined,
omy. market
(A) Traditional (C) Communism, capitalism, free market,
(B) Command macroeconomics
(C) Market (D) Microeconomics, macroeconomics,
(D) Mixed individual, traditional

365. C 366. B 367. A 368. D 369. D 370. B 371. C 372. A 373. A 374. A 375. D
82 Chapter 1. ECONOMICS

375. A place where buyers and sellers come (A) Traditional

together to exchange goods and services (B) Command
for money
(C) Market
(A) market
(D) none of above
(B) Amazon.com
(C) Starbucks 381. Which of these economic systems have
(D) all of the above the least in common?
(A) Market economy and capitalism
376. When an economy focuses on having jobs (B) Command economy and socialism
for all individuals willing and able to work
(C) Command economy and capitalism
this is known as:
(D) Free-enterprise economy and market
(A) Sustainability
economy
(B) Full Employment
(C) Efficiency 382. Which of the following countries has a
(D) Security command economy?
(A) USA
377. The farmer decides to sell one cow and (B) France
use the money to buy a bull for the pur-
(C) N Korea
pose of breeding more cows.
(D) Germany
(A) Communism
(B) Capitalism 383. What is a disadvantage of a mixed econ-
(C) Socialism omy?
(D) none of above (A) Private ownership of resources
(B) Government regulations
378. Which of the following is an ADVANTAGE
of a traditional economy? (C) Inequities in the distribution of wealth
(A) Discourages new ideas and new ways
of thinking (D) Strong social networks
(B) Lower standard of living 384. the total value of goods and services in
(C) lack of progress a country
(D) Stable, predictable (A) GDP
(B) subsidy
379. A country’s economic system attempts
to deal with the problem of not having (C) import
enough resources to meet people’s needs (D) embargo
and wants.
385. In Indonesia, the government owns large
(A) Scarcity
industries and sets some prices. Private
(B) Labor individuals also do business. Which eco-
(C) Greed nomic system is described above?
(D) Capital (A) Traditional
(B) Free Enterprise
380. “WE COULD SELL OUR PRODUCTS FOR
PERSONAL PROFIT IN WHICH SYSTEM?” (C) Socialist
Name that system! (D) Communist

376. B 377. B 378. D 379. A 380. C 381. C 382. C 383. C 384. A 385. C 386. A
1.5 Economic Systems 83

386. Which of the following is an example of
an export for the USA?
(A) America sells paper to Germany
(B) Germany sells printers to America
(C) America sells printers to central
Florida
(D) South Africa buys meat from Chile
391. The three economic questions that every
group of people face with goods and ser-
vices are
(A) Why, Who, When
(B) What, How, For Whom
(C) Por que, Cual, Cuando
(D) How come, How many, How are

NARAYAN CHANGDER
387. The goal of a communist economy is to 392. A person who buys a good or uses a ser-
(A) achieve a classless society; equality vice is known as a
among all workers (A) dictator
(B) let supply and demand control the (B) monarch
economy (C) merchant
(C) give control of the economy to con- (D) consumer
sumers and sellers
(D) adhere to tradition when it comes to 393. Which African kingdom made a profit off
the economy of the salt-gold trade?
(A) Mali
388. What are 3 economic questions? (B) Songhai
(A) What to produce? How To Produce? (C) Egypt
For whom to produce?
(D) Ghana
(B) Who can produce? Why you produce?
Like to produce? 394. An economic system that permits an
(C) Why to produce? Tell who to pro- open exchange (with no restrictions) of
duce? Things to produce? goods and services between producers and
(D) What to produce? How to produce? consumers.
When to reduce? (A) market
(B) command
389. In a market economy, decides what
(C) traditional
needs to be made.
(D) mixed
(A) consumer
(B) producer 395. Supply and demand determines how
(C) the government much an item costs
(D) everyone (A) Market
(B) Command
390. Which best describes a market system?
(C) Mixed
(A) government provides services such
(D) Communist
as telephones and televisions
(B) A person can start any legal business 396. Which of the following would be most
and charge any price likely to exist in a socialist country?
(C) The government provides food and (A) Universal health care (the govern-
housing to all workers ment provides health insurance for every-
(D) Businesses are owned by the govern- one)
ment (B) Tax breaks for the mega rich

387. A 388. A 389. A 390. B 391. B 392. D 393. D 394. A 395. A 396. A
84 Chapter 1. ECONOMICS

(C) Private education only (no public 402. For markets to work efficiently, need
schools) to be well defined and enforced by law,
(D) Government ownership of all land and otherwise trade would break down.
property (A) competition
(B) private property rights
397. An economic system in which the means (C) voluntary exchange
of planning, producing and distributing
(D) consumer soverignty
goods is controlled by a central govern-
ment that theoretically seeks a more just 403. The relationship between an opposing
and equitable distribution of property and person or business in a commercial set-
wealth is called: ting that many times will result in a better
(A) Socialism product for consumers.
(B) Communism (A) Investment
(C) Democracy (B) Capitalism
(C) Free Enterprise
(D) Monarchy
(D) Competition
398. Which of the following is not an example
404. limit on an import
of a communist economic system?
(A) tariff
(A) China
(B) quota
(B) North Korea (C) embargo
(C) Cuba (D) specialization
(D) France
405. What economic system is based on sup-
399. a tax on an import ply and demand?
(A) tariff (A) traditional
(B) command
(B) quota
(C) market
(C) embargo
(D) mixed
(D) specialization
406. In which type of government do con-
400. The structure of methods and principles sumers, firm, and government answer the
that a society uses to produce and dis- key economic questions?
tribute goods and services. (A) Command
(A) Economic Market (B) Traditional
(B) Economic System (C) Mixed
(C) Economic Indicator (D) Free Market
(D) Economic Security 407. True or False:The basic questions of eco-
nomics differ based on each economic sys-
401. a block on trade
tem.
(A) embargo (A) True
(B) quota (B) False
(C) specialization (C) Not enough info
(D) trade (D) none of above

397. A 398. D 399. A 400. B 401. A 402. B 403. D 404. B 405. C 406. C 407. B
408. A
1.5 Economic Systems 85

408. If I produce meat but, the government 413. What is an economic system character-
has to check to make sure I can put this ized by central authority that makes most
product on the market, what economic sys- of the major economic decisions?
tem is this? (A) traditional economy
(A) Mixed (B) free enterprise
(B) Traditional (C) mixed economy
(C) Market (D) command economy

NARAYAN CHANGDER
(D) Command
414. People or businesses that create goods
409. In command economy, how are economic or services are known as
decisions made? (A) Producers
(A) consumers and habit (B) Consumers
(B) government planners (C) Entrepreneur
(C) consumers and the market (D) Economists
(D) combination of consumers and plan- 415. In a mixed economy, the role of the gov-
ners ernment is to
(A) define goals and objectives
410. As a consumer, I can buy as much as I
want, as long as I have the money to pay (B) central planning agency
for it (C) set prices
(A) Command (D) preserve competition
(B) Market 416. The struggle among producers for the
(C) Traditional dollars of consumers.
(D) Mixed (A) Competition
(B) Market
411. The flow of money into an economy is
(C) Firm
called
(D) Profit
(A) injections
(B) imports 417. Send goods into a another country
(C) taxes (A) continuum
(D) savings (B) products
(C) export
412. Which rights are necessary for en-
(D) import
trepreneurs to obtain credit and capital?
(A) credit from financial institutions and 418. Sam loves science and wants to become a
economic rights doctor but he is learning how to make clay
(B) services from financial institutions bricks like his father and grandfather.
and economic rights (A) Free Market
(C) credit from financial institutions and (B) Traditional
property rights (C) Mixed
(D) none of above (D) Command

409. B 410. B 411. A 412. C 413. D 414. A 415. D 416. A 417. C 418. B 419. B
86 Chapter 1. ECONOMICS

419. What is the best definition of a mixed 424. All democratic countries of the world are
economy? (A) traditional
(A) the least popular type of economic (B) command
system
(C) market
(B) an economy that has all three of the
(D) mixed
other economic systems present
(C) an economic system that has ele- 425. What is a laissez faire capitalist ap-
ments of traditional, command, and/or proach to govt
market economies (A) hands off (left alone, let it be)
(D) none of the above (B) Extreme Control
420. Which situations cause equilibriumprice (C) Trusting the government
to rise? I The number of buyersdecreases. (D) A mix of control and hands off
II The number of buyersincreases. III The
number of sellersdecreases. IV The num- 426. In which type of economic system do cit-
ber of sellersincreases. izens and businesses make most economic
decisions?
(A) I and III
(A) Free Enterprise
(B) I and IV
(C) II and III (B) Communist
(D) II and IV (C) Socialist
(D) none of above
421. What is GDP?
(A) The value of goods and services a 427. Which of the following is an example of
country produces a type of mixed economy?
(B) Good Domestic Product (A) communism
(C) Trade Barriers countries place on (B) socialism
each other (C) free enterprise
(D) People who take risks on new busi- (D) all of the above
nesses
428. The government or groups of workers
422. Which of the following continents has might control these resources but the prof-
(for the most part) embraced socialism? its are divided among the people.
(A) North America (A) Capitalism
(B) South America (B) Communism
(C) Asia (C) Socialism
(D) Europe (D) Mixed Economy

423. The items that consumers buy are called 429. The closest thing to a planned/command
economy today exists in:
(A) Private property (A) Soviet Union
(B) Factors of production (B) Czechoslovakia
(C) Producer goods (C) North Korea
(D) Consumer goods (D) Germany

420. C 421. A 422. D 423. D 424. D 425. A 426. A 427. B 428. C 429. C 430. A
1.5 Economic Systems 87

430. import 436. Rapid organization of resources often

(A) goods entering a country
(B) goods leaving a country
(C) embargo
(D) quota
431. Characteristics of both market and com-
means command economies forget other
societal needs, and they often produce too
much of one thing and not enough of an-
other. Which disadvantage does this be-
long to?
(A) Command
(B) Traditional

NARAYAN CHANGDER
mand economic systems.
(C) Mixed
(A) Traditional economy (D) Market
(B) Mixed economy
437. Which of the following is NOT one of the
(C) distribution
three basic questions used to determine a
(D) production country’s economic system?
(A) When to produce?
432. Economic system based on supply and de-
mand, instead of government regulation (B) What to produce?
(C) How to produce?
(A) Market
(D) For whom to produce?
(B) Traditional
(C) Command 438. Supply & demand is a principle that fits
(D) Mixed which type of economic system?
(A) Free enterprise
433. This economic system provides a high de- (B) Communism
gree of consumer satisfaction because indi- (C) Socialism
viduals make most of the decisions.
(D) Traditional
(A) Traditional
(B) Command 439. In a command economy, economic deci-
sions are made by the
(C) Market
(A) Consumers
(D) none of above (B) market
434. What kind of resource is a teacher? (C) government
(D) producers
(A) Natural
(B) Cultural 440. Economic system where the government
(C) Human answers all three basic economic ques-
tions:
(D) Capital Goods
(A) Market
435. Government owns the means of produc- (B) Command
tion. (C) Traditional
(A) traditional (D) Modern or Mixed
(B) command 441. Most democratic countries have what
(C) market type of economic system?
(D) mixed (A) mixed

431. B 432. A 433. C 434. C 435. B 436. A 437. A 438. A 439. C 440. B 441. A
442. C
88 Chapter 1. ECONOMICS

(B) market 447. Which of the following is not a fundamen-

(C) command tal economic question?
(D) traditional (A) What should be produced?
(B) How should it be produced?
442. A system of producing, distributing, and (C) How should the products be dis-
consuming goods and services is known as tributed?
a
(D) Who should get it?
(A) Government
(B) Constitution 448. Allows each member of society to make
choices about how to use their resources
(C) Economy
(A) Security
(D) Culture
(B) efficiency
443. Price set by the government (C) Freedom
(A) Traditional economic system (D) Satbiility
(B) Command economic system 449. The income people receive for supplying
(C) Pure economy factors of production, such as land, labor
(D) Market economy or capital.
(A) Profit
444. This economic system lacks incentive for (B) Factor Payments
individuals because a central authority con-
(C) Incentive
trols the factors of production; there is no
private property. (D) Free Enterprise
(A) Traditional 450. Which of the following would NEVER
(B) Command happen in a TRULY communist society?
(C) Market (A) Private property will be abolished
(D) none of above (B) Some people will be richer than other
people
445. Which economic system is the most com- (C) People will work
petitive? (D) People would be of the same social
(A) traditional class
(B) market
451. An economic system in which the means
(C) mixed of production is owned by the government
(D) command and private ownership doesn’t exist.
(A) Capitalism
446. Sometimes consumers buy less of one-
(B) Imperialism
product because they buy a similarproduct
at a lower price. What pattern ofbehavior (C) Socialism
does this example reflect? (D) Communism
(A) law of demand 452. What is/are the basic question(s) all eco-
(B) income effect nomic systems try to answer?
(C) law of diminishing marginal utility (A) What (and how much) to produce?
(D) substitution effect (B) How to produce?

443. B 444. B 445. B 446. D 447. C 448. C 449. B 450. B 451. D 452. D
1.5 Economic Systems 89

(C) For whom to produce? (How to dis- 458. Government creates program to retrain
tribute income?) workers who have lost their jobs to over-
(D) All of the above. seas workers.
(A) Economic Equity
453. Choose the correct examples of a pri- (B) Economic Growth
mary activity.
(C) Economic Stability
(A) truck driver, doctor, store clerk,
(D) Economic Security
restaurant

NARAYAN CHANGDER
(B) manufacturing and construction 459. In a free market economy, people
(C) mining, agriculture, fishing (A) can choose what to buy and sell
(D) research and data processing (B) must buy their fruits and vegetables
at a farmers’ market
454. A farmer owns two cows and can sell the (C) have to do all of their shopping on
milk to any dairy. Amazon.com
(A) Communism (D) do not get to choose what jobs they
(B) Capitalism have when they grow up
(C) Socialism 460. Waiting in line to get the limited amount
(D) none of above of items available.
(A) 1st Come-1st Serve
455. In a “pure” communist society, who are
the wealthiest and most powerful peo- (B) Command
ple? (C) Lottery
(A) Intellectuals (D) Rationing
(B) Business leaders 461. This economic system has a notable lack
(C) Military leaders of government interference.
(D) No One every member of society (A) Traditional
is supposed to be equal (B) Command
456. Consumers make economic decisions (C) Market
(D) none of above
(A) Traditional economic system
(B) Command economic system 462. What are two types of products in any
(C) Mixed economic system economy?
(D) Market economic system (A) computers & automobiles
(B) goods & services
457. Which of the following is NOT one of the (C) farming & technology
characteristics of a command economy?
(D) businesses & technology
(A) change direction drastically in short
period of time 463. Who or what answers the basic economic
(B) provides few incentives for produc- questions in a command economy?
tive work (A) Individuals and businesses
(C) it is designed to meet the wants of (B) Government
consumers (C) Individuals
(D) no private property rights (D) Businesses

453. C 454. B 455. D 456. D 457. C 458. D 459. A 460. A 461. C 462. B 463. B
464. A
90 Chapter 1. ECONOMICS

464. Who owns the resources in a command 470. government in which the government
economy? owns all property
(A) the government (A) communism
(B) no one (B) traditional economy
(C) individuals (C) command economy
(D) private business (D) socialism

465. In a traditional economic system, the 471. When Fresh Express Salads decides to
question of what to produce is answered mechanically pick all of its lettuce, it di-
by producing: rectly answers the question.
(A) what the government chooses. (A) what
(B) how
(B) what consumers need and want.
(C) for whom
(C) what supply dictates.
(D) where
(D) what has always been produced.
472. Import
466. The food supply is rationed, or divided,
(A) Selling things to another country for a
so everyone gets the same amount. The
profit.
government is in charge of this:
(B) Purchasing items from another coun-
(A) Command try
(B) Market (C) Giving things to another country.
(C) Mixed (D) Getting things from another country
(D) Traditional
473. In which of the following economic sys-
467. Which is NOT an economic goal of the tems does the government own the coun-
free market? try’s farms, factories, and businesses?
(A) Economic efficiency (A) Free Enterprise
(B) Economic freedom (B) Communist
(C) Economic growth and innovation (C) Socialist
(D) Economic equity (D) none of above

468. A benefit of technology is that it 474. People freely and willingly engaging in
market transactions
(A) Increases productivity
(A) consumer sovereignty
(B) Makes certain jobs obsolete
(B) voluntary exchange
(C) Decreases a nation’s GDP (C) modified free enterprise
(D) Slows or stops production (D) coercion
469. Money spent or cost incurred in an or- 475. Which economic system is most likely to
ganization’s efforts to generate revenue, be used in a country that doesn’t trade
representing the cost of doing business much with other countries?
(A) Cost of Goods (A) Traditional
(B) Expenses (B) Mixed
(C) Income (C) Command
(D) Profit (D) Market

465. D 466. A 467. D 468. A 469. B 470. A 471. B 472. B 473. B 474. B 475. A
476. B
1.5 Economic Systems 91

476. Competition, entrepreneurship, and ex-
treme wealth would most likely exist in
which of the economic systems below
(A) Traditional
(B) Free-market Capitalism
(C) Centrally-planned Command
(D) Equitorial
(C) Competition being the regulating
force in the market place
(D) The equal distribution of wealth
482. Different nations interacting through
people, government, business, trade &
technology is
(A) Communism

NARAYAN CHANGDER
477. In this system the government is al- (B) Globalization
ways a one-party dictatorship where peo-
(C) Socialism
ple have few rights.
(D) Supply and Demand
(A) Communism
(B) Capitalism 483. What is NOT true about communism?
(C) Socialism (A) People were poor.
(D) none of above (B) People were rich.
478. When the product is produced for the cur- (C) No one could own property.
rent generation it is what type of econ- (D) People had very little freedoms.
omy?
(A) Mixed 484. Laissez-faire capitalism as attributed to
Adam Smith called for
(B) Market
(C) Traditional (A) heavy taxation of manufacturers
(D) Command (B) strict government control of the econ-
omy
479. Who owns the factors of production in (C) minimal government involvement in
the competitive economic system of capi- the economy
talism?
(D) government investments in major in-
(A) private citizens dustries
(B) the government
(C) central planning agency 485. People or businesses that buy or use
(D) Coach Landis goods or services are known as
(A) Producers
480. inputs needed to produce a good or ser-
(B) Consumers
vice.
(C) Entrepreneur
(A) goods
(D) Economists
(B) services
(C) factors of production 486. Which of the basic economic systems al-
(D) wants low government to control most aspects of
the economy?
481. What is the invisible hand?
(A) mixed
(A) The self-regulating nature of the mar-
ket place (B) command
(B) Self-interest motivating the market (C) market
place (D) traditional

477. A 478. C 479. A 480. C 481. A 482. B 483. B 484. C 485. B 486. B 487. A
92 Chapter 1. ECONOMICS

487. Which of the following best describe a 492. Whenever you are faced with a choice,
tariff? the value of the next best alternative
(A) a tax placed on goods imported from (whatever you’ve chosen to give up or sac-
a country rifice) is called:
(B) a ban placed on all trade with a par- (A) Scarcity
ticular country (B) Supply and Demand
(C) a tax on exported goods paid to the (C) Opportunity Cost
exporting government (D) Profit
(D) a limit on the amount of goods that
493. This economic system is described as
can be imported from a country
“The Government’s Way”
488. Economic system where individuals (pro- (A) Traditional
ducers and consumers) answer the three (B) Command
basic economic questions: (C) Mixed
(A) Market (D) Market
(B) Command
494. In a socialist economic system, who
(C) Traditional
tends to answer the question of how prod-
(D) Modern or Mixed ucts will be produced?
489. North Korea has what type of economic (A) Government and business
system? Hint:their government controls (B) Government and individuals
every aspect of the economy (C) Business and individuals
(A) Traditional (D) Tradition and government
(B) Socialist
495. Which factor determines who a society
(C) Market will produce goods and services for?
(D) Command (A) the available resources in the society
490. This characteristic of a Mixed Economy
describes the natural rivalry created when (B) the population of the society
two businesses offer the same, or similar, (C) the economic system in the society
goods. (D) none of above
(A) Competition
496. Economic system in which a central au-
(B) Freedom of Enterprise and Choice thority is in command of the economy.
(C) Private Property (A) Command Economy
(D) Motive of Self-Interest (B) Mixed Economy
491. An advantage of this economic system (C) Centrally Planned Economy
is:the variety of goods and services that (D) Traditional Economy
are produced.
497. A Mixed Economy uses ideas from
(A) Traditional
(A) Both Traditional and Market
(B) Command Economies
(C) Capitalism/Market (B) Both Market and Command
(D) socialist Economies

488. A 489. D 490. A 491. C 492. C 493. B 494. A 495. C 496. A 497. B
1.5 Economic Systems 93

(C) Both Traditional and Command 503. Work done for a fee.
Economies (A) Goods
(D) Traditional, Market, and Command (B) Service
Economies (C) Tax
498. What is one way government can foster (D) Profit
human capital? 504. Which of the following is characteristic
(A) Improve the nation’s infrastructure of traditional economy?

NARAYAN CHANGDER
(B) Maintaining better police protection (A) Public service are available at little or
(C) Provide funding for education no cost.
(D) Deregulating industries (such as the (B) It discourages new ideas and new
petroleum industry) ways of doing things
(C) it has a great deal of economic free-
499. The methods that society uses to produce dom
and distribute resources (D) It provides workers with few incen-
(A) Command Economy tives to work hard
(B) Farming Economy
505. A tax on goods a country imports
(C) Shifted Economy
(A) Quota
(D) Economic Systems
(B) Tariff
500. Which of the following is true of tradi- (C) Subsides
tional economies? (D) Embargoes
(A) economic decisions are determined
506. In which type of economy does the gov-
by the government.
ernment control everything?
(B) People have access to private prop-
(A) Traditional
erty.
(B) Command
(C) the production of goods is based on
(C) Market
custom.
(D) Mixed
(D) they resemble a communist economic
system. 507. Mr. Dyvig’s business is ran incredibly
strict. He sets the rules and his employ-
501. Economic system in which decisions on
ees are expected to follow them. What
production and consumption of goods and
form of economic system is this?
services are based on voluntary exchange
(A) Traditional
in markets.
(B) Mixed
(A) Centrally Planned Economy
(C) Command
(B) Mixed Economy
(D) Market
(C) Traditional Economy
(D) Market Economy 508. Which of the following leads to bet-
ter, less expensive products in a capitalist
502. What did karl marx believe in? economy?
(A) Command Economy (A) quotas
(B) Self-interest (B) competition
(C) Let it be (C) market fluctuations
(D) Market Economy (D) inequality

498. C 499. D 500. C 501. D 502. A 503. B 504. B 505. B 506. B 507. C 508. B
509. A
94 Chapter 1. ECONOMICS

509. Which is an example of human capital? (B) Market Economy

(A) Education (C) Command Economy
(B) Roads (D) Mixed Economy
(C) Factories
515. Which of these terms/ideas best repre-
(D) Machinery
sents Karl Marx’s theory of communism?
510. What economic systems consists of both (A) Authoritarian
command and market? (B) Common Property
(A) traditional (C) Competition
(B) command (D) Supply and Demand
(C) market
516. extent to which individuals or organi-
(D) mixed
zations are better off at the end of an
511. What do the economic systems of the economic exchange than before the ex-
United Kingdom, Germany, & Russia have change.
in common? (A) profit
(A) All are examples of pure market (B) private property rights
economies (C) Social Security
(B) All are examples of mixed economies (D) capitalism

(C) All are examples of traditional 517. Which is NOT one of the types of re-
economies sources?
(D) All are examples of command (A) Capital
economies (B) Human
512. Since traditional economies are small, (C) Sustainable
they aren’t as destructive to the environ- (D) Natural
ment as developed economies. Which eco-
nomic system is this? 518. In the products market,
(A) Market (A) firms buy goods and services from
households
(B) Command
(B) firms sell goods and services to
(C) Traditional
households
(D) Mixed
(C) firms sell resources to households
513. Which of the following is not an economic (D) firms buy resources from households
system?
(A) Traditional 519. embargo is
(B) Market (A) an official limit on the number or
amount of things that are allowed
(C) Command
(B) a tax on goods coming into or leaving
(D) Democratic
a country
514. The United States is now categorized as (C) A government order that ends trade
this economic system. in some way.
(A) Traditional Economy (D) none of above

510. D 511. B 512. C 513. D 514. D 515. B 516. A 517. C 518. B 519. C 520. C
1.5 Economic Systems 95

520. An economy in which changes in prices 526. What type of economic system allows
completely guide what goods and ser- government and private businesses to
vices will be produced, distributed and con- make economic decisions?
sumed. (A) Market
(A) traditional (B) Mixed
(B) command (C) Traditional
(C) market (D) command
(D) mixed

NARAYAN CHANGDER
527. A market economy is very different from
521. Which is NOT an example of a public a command economy. Which of the follow-
good? ing is found in a market economy?
(A) park (A) Guaranteed yearly pay raises
(B) police force (B) Government control of agriculture
(C) military (C) competition
(D) supermarket (D) government control of industry
522. Choosing an item that cost $2.00 528. A system that most likely would use bar-
cheaper than the original price tering or trading.
(A) Price (A) Mixed
(B) Command (B) Market
(C) Sharing Equally (C) Traditional
(D) Lottery (D) command
523. Which type of economic activity pro- 529. The current economic system in the U.S.
cesses and distributes information? is
(A) Primary (A) Mixed (Market/Command)
(B) Secondary (B) Mixed (Market/Traditional)
(C) Tertiary (C) Command
(D) Quaternary (D) Traditional
524. Economic system in which the central 530. The way a country organizes how it will
government makes all decisions on the pro- produce goods to meet the needs of its
duction and consumption of goods and ser- people
vices. (A) Economic System
(A) Command Economy (B) Human Rights
(B) Centrally Planned Economy (C) Government
(C) Mixed Economy (D) Statistics
(D) Market Economy
531. Where individuals own all property and
525. Which of the following is NOT considered means of production and the government
an economic and social goal? has a hands off policy.
(A) economic efficiency (A) Communism
(B) price stability (B) Socialism
(C) economic growth (C) Capitalism
(D) entrepreneurship (D) none of above

521. D 522. A 523. D 524. B 525. D 526. B 527. C 528. C 529. A 530. A 531. C
532. A
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4 □GOVT EXAM 4□UPPSC 4
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FOR COMPETITIVE EXAMINATION FOR COMPETITIVE EXAMINATION A COMPREHENSIVE BOOK FOR
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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER
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CLASS 10 CHEMISTRY
YOUR COMPREHENSIVE KHAN ACADEMY
CLASS 10 BIOLOGY
YOUR COMPREHENSIVE KHAN ACADEMY
CLASS 9 PHYSICS
YOUR COMPREHENSIVE KHAN ACADEMY
NCERT CURRICULUM COMPANION NCERT CURRICULUM COMPANION NCERT CURRICULUM COMPANION

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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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WBYOUR
TET ENGLISH SCIENCE (CLASS 5) KG GENERAL KNOWLEDGE
COMPREHENSIVE EMPOWERING YOUR CHILD'S SCIENCE JOUR- EMPOWERING YOUR CHILD'S GENERAL KNOWL-
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 MOST POPULAR AROUND THE WORLD MOST POPULAR AROUND THE WORLD MOST POPULAR AROUND THE WORLD

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PHYSICAL EDUCATION
YOUR COMPREHENSIVE
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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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BIOLOGY CLASS 11
A COMPREHENSIVE GUIDE
BIOLOGY CLASS 12 PHYSICAL EDUCATION CLASS 12
ALIGNED WITH NCERT SYLLABUS YOUR ULTIMATE NCERT SYLLABUS COMPANION YOUR ULTIMATE NCERT SYLLABUS COMPANION

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CLASS 10 SCIENCE CLASS 12 BIOLOGY

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YOUR ULTIMATE NCERT SYLLABUS COMPANION NCERT CURRICULUM COMPANION NCERT CURRICULUM COMPANION

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NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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 MOST POPULAR AROUND THE WORLD MOST POPULAR AROUND THE WORLD MOST POPULAR AROUND THE WORLD

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AP BIOLOGY VISUAL BASIC ANTHROPOLOGY MCQ

YOUR COMPREHENSIVE GUIDE TO EXCELLING YOUR COMPREHENSIVE GUIDE TO EX- YOUR ULTIMATE EXAM PREPARATION GUIDE
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NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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COMMERCE MCQ HOME SCIENCE POLITICAL SCIENCE

YOUR COMPREHENSIVE EXAM YOUR COMPREHENSIVE POLITICS AT YOUR FINGERTIPS
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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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TEACHING APTITUDE YOGA MCQ

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NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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ENGLISH LANGUAGE & LITERATURE (CBSE) BUSINESS MANAGEMENT

YOUR ULTIMATE GUIDE TO EX-
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NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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BOTANY
YOUR COMPREHENSIVE GUIDE TO MAS-
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YOUR COMPREHENSIVE GUIDE TO MAS-
AP WORLD HISTORY
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TERING PLANT SCIENCE EXAMINATIONS TERING BIOCHEMISTRY EXAMINATIONS TERING HISTORY EXAMINATIONS

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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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AMERICAN HISTORY
YOUR COMPREHENSIVE GUIDE TO MAS-
AP PSYCHOLOGY
YOUR COMPREHENSIVE GUIDE TO MAS-
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COMPUTER SCIENCE
YOUR ROADMAP TO SUCCESS IN KEY
COMPUTER NETWORKING
YOUR COMPREHENSIVE GUIDE TO NAV-
FUNDAMENTALS OF COMPUTER
YOUR COMPREHENSIVE GUIDE TO MAS-
COMPUTER SCIENCE ASSESSMENTS IGATING THE WORLD OF NETWORKING TERING COMPUTER BASICS AND BEYOND

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MCQ EDITION MCQ EDITION MCQ EDITION

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COMPUTER CONCEPTS & APPLICATIONS

YOUR COMPREHENSIVE GUIDE TO
COMPILER DESIGN
YOUR COMPREHENSIVE GUIDE TO MAS-
CLOUD COMPUTING
YOUR COMPREHENSIVE GUIDE TO MASTER-
NAVIGATING THE DIGITAL WORLD TERING COMPILER CONSTRUCTION ING CLOUD CONCEPTS AND CERTIFICATIONS

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MCQ EDITION MCQ EDITION MCQ EDITION

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YOUR ULTIMATE GUIDE TO EX-
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YOUR COMPREHENSIVE GUIDE TO ACING
ENGLISH LANGUAGE & LITERATURE (CBSE)

CELLING IN MEDICAL ASSESSMENTS TEACHING AND EDUCATIONAL ASSESSMENTS COMPREHENSIVE STUDY GUIDE FOR CLASS IX

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MCQ EDITION MCQ EDITION MCQ EDITION

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ENTREPRENEURSHIP EXCELLENCE GRAMMAR GURU EDUCATION MCQ

YOUR COMPREHENSIVE GUIDE TO ACING BUSI- YOUR ULTIMATE GUIDE TO MASTERING EN- YOUR COMPREHENSIVE GUIDE TO NAV-
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ECONOMICS
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YOUR COMPREHENSIVE JOURNEY
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YOUR COMPREHENSIVE GUIDE TO ACING DEN-
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MCQ EDITION MCQ EDITION MCQ EDITION

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DENDROLOGY COST ACCOUNTING

YOUR COMPREHENSIVE GUIDE TO SUC-
MACHINE LEARNING
YOUR COMPREHENSIVE GUIDE TO MASTER-
EXPLORING THE WORLD OF TREES CESS IN ACCOUNTING ASSESSMENTS ING THE ART OF ARTIFICIAL INTELLIGENCE

DESIGNED FOR SURE SUCCESS DESIGNED FOR SURE SUCCESS DESIGNED FOR SURE SUCCESS

MCQ EDITION MCQ EDITION MCQ EDITION

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INFORMATION TECHNOLOGY IMMUNOLOGY EXAM EXCELLENCE HORTICULTURE EXAM MASTERY

YOUR COMPREHENSIVE GUIDE YOUR COMPREHENSIVE GUIDE TO AC- YOUR COMPREHENSIVE GUIDE TO ACING
TO ACING IT ASSESSMENTS ING IMMUNOLOGY ASSESSMENTS HORTICULTURAL SCIENCES ASSESSMENTS

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MCQ EDITION MCQ EDITION MCQ EDITION

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HISTOLOGY MCQ MASTERY

YOUR COMPREHENSIVE GUIDE TO
GROSS ANATOMY
YOUR COMPREHENSIVE GUIDE TO
GEOLOGY
YOUR COMPREHENSIVE GUIDE TO
ACING HISTOLOGY EXAMINATIONS ACING ANATOMY ASSESSMENTS ACING GEOLOGY EXAMINATIONS

DESIGNED FOR SURE SUCCESS DESIGNED FOR SURE SUCCESS DESIGNED FOR SURE SUCCESS

MCQ EDITION MCQ EDITION MCQ EDITION

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GENERAL ANATOMY
YOUR COMPREHENSIVE GUIDE TO
FOOD TECHNOLOGY
YOUR COMPREHENSIVE GUIDE TO AC-
FISHERIES SCIENCE
PREPARE TO CONQUER FISH-
ACING ANATOMY EXAMINATIONS ING FOOD TECHNOLOGY ASSESSMENTS ERIES SCIENCE EXAMINATIONS

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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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ENGLISH LITERATURE BANKING AFFAIRS INDIAN GEOGRAPHY

SHARPEN YOUR KNOWLEDGE FOR BANKING JOB ASPIRANTS UNLEASHING THE BEAUTY OF
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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER
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INDIAN POLITY EVERYDAY SCIENCE CRACKING NTA NET

DECODING INDIA'S DEMOCRATIC EXPLORING SCIEN-
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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER
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UNLEASHING THE BEAUTY OF FOR BANKING JOB ASPIRANTS MCQ's FOR COMPETITIVE EXAMINATIONS
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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

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MCQ EDITION MCQ EDITION MCQ EDITION

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VOCABULARY PRODIGY
BOOST YOUR WORD POWER
UGCTHENET LINGUISTIC
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WITH THIS ULTIMATE MCQ BOOK FOR EXAM PREPARATION EVERY TEACHER MUST KNOW

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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
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 The excellent aid for better rank.  The excellent aid for better rank.  The excellent aid for better rank.
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LIBRARY & INFORMATION SCIENCE ANATOMY (THORAX, ABDOMEN & PELVIS) PSYCHOLOGY OF EMOTIONS
LIBRARIANS GUIDE YOUR ULTIMATE GUIDE TO UNLOCKING THE SECRETS OF THE MIND
MEDICAL EXAM SUCCESS

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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
 The excellent aid for better rank.  The excellent aid for better rank.  The excellent aid for better rank.
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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
 The excellent aid for better rank.  The excellent aid for better rank.  The excellent aid for better rank.
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SOFTWARE ENGINEERING RESEARCH METHODOLOGY PATHOLOGY

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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
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BACTERIOLOGY DATA MINING OPERATING SYSTEMS

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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
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LIFE SCIENCES MCQ OBJECTIVE FORESTRY OBJECTIVE BIOLOGY

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
 The excellent aid for better rank.  The excellent aid for better rank.  The excellent aid for better rank.
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 Over 9159 questions.
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NUTRITION NURSING ENGLISH LITERATURE

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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
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4 □TRIVIA TEST 4
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4 □TRIVIA TEST 4
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NEET BIOLOGY CLINICAL SCIENCES PARA-CLINICAL

ULTIMATE BOOK FOR EXAM SUCCESS NEET PG SUCCESS KIT NEET PG SUCCESS KIT

DESIGNED FOR SURE SUCCESS DESIGNED FOR SURE SUCCESS DESIGNED FOR SURE SUCCESS

MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
 The excellent aid for better rank.  The excellent aid for better rank.  The excellent aid for better rank.
 Perfect for all competitive exam.  Perfect for all competitive exam.  Perfect for all competitive exam.
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 Toppers FIRST choice BI D  Toppers FIRST choice BI D  Toppers FIRST choice BI D
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 Over 16832+ questions. E AM HA  Over 13138+ questions. E AM HA  Over 12813+ questions. E AM HA
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PRE-CLINICAL MUSCLE PHYSIOLOGY MRCP(UK) EXAMINATIONS

NEET PG SUCCESS KIT YOUR COMPREHENSIVE GUIDE TO UNDER- PASS THE MRCP PACES EXAM WITH EASE
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A M AR A M AR A M AR
 Over 19542 questions.
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+ E H
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MICROPROCESSORS & MICROCONTROLLERS

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MICROBIOLOGY MICROANATOMY
COMPREHENSIVE GUIDE TO EXPLORING THE
TO EMBEDDED SYSTEMS MICROBIOLOGY MASTERY FOR EXAMS INTRICATE WORLD OF TISSUES AND CELLS

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MCQ EDITION MCQ EDITION MCQ EDITION

NARAYAN CHANGDER NARAYAN CHANGDER NARAYAN CHANGDER

 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
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MEDICINE MCQ MEDICAL PHYSIOLOGY PARA-CLINICAL

COMPREHENSIVE GUIDE FOR MASTERING THE SCIENCE OF THE HUMAN BODY NEET PG SUCCESS KIT
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MCQ EDITION MCQ EDITION MCQ EDITION

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 Coverage of all important topics.  Coverage of all important topics.  Coverage of all important topics.
 Answer key at end of each page  Answer key at end of each page  Answer key at end of each page
 The excellent aid for better rank.  The excellent aid for better rank.  The excellent aid for better rank.
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COMPREHENSIVE GUIDE TO EXCEL- YOUR COMPREHENSIVE YOUR COMPREHENSIVE GUIDE FOR ACING LAN-
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KIDS QUIZ ISLAMIC QUIZ BOOK AGRICULTURE OLYMPIAD

FUN AND EDUCATIONAL QUIZZES YOUR COMPETITIVE GUIDE TO MAS-
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MCQ EDITION MCQ EDITION MCQ EDITION

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BSC AGRICULTURE EXAM COMPANION HANDBOOK OF AGRICULTURE AGRICULTURE QUESTION BANK

YOUR COMPREHENSIVE GUIDE TO EX- YOUR COMPREHENSIVE REFERENCE YOUR COMPREHENSIVE RESOURCE FOR
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MCQ EDITION MCQ EDITION MCQ EDITION

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DR ORK DR ORK DR ORK
USEFUL FOR
W USEFUL FOR
W USEFUL FOR
W
□ICAR 4
4 □PET BHU 4
□BSC 4
□BCECE 4
□JCECE 4□KEAM □ICAR 4
4 □PET BHU 4
□BSC 4
□BCECE 4
□JCECE 4□KEAM □ICAR 4
4 □PET BHU 4
□BSC 4
□BCECE 4
□JCECE 4□KEAM
4OUAT 4
□ □EAMCET 4□EAPCET 4□LPU NEST 4
□BVP CET 4OUAT 4
□ □EAMCET 4□EAPCET 4□LPU NEST 4
□BVP CET 4OUAT 4
□ □EAMCET 4□EAPCET 4□LPU NEST 4
□BVP CET
□SAAT 4
4 □NTA NET 4
□JETPG 4 □MP PAT □SAAT 4
4 □NTA NET 4
□JETPG 4 □MP PAT □SAAT 4
4 □NTA NET 4
□JETPG 4 □MP PAT