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

In a free enterprise economy, economic problems are solved by _____ (JAMB 2015)

A. a planning committee
B. government agencies
C. both the public and the private sectors
D. the price mechanism

In capitalist economy, the economic problem of what to produce is decided mainly by _____ (JAMB 2000)

A. shadow prices
B. profit level
C. relative prices
D. a central planner

In capitalist economy, questions about what to produce are ultimately answered by ____ (JAMB 2014)

A. spending decisions of households
B. income level of households
C. available technical skills in the economy
D. output decisions of firms

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

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

The privatization exercise in Nigeria is a move towards ____ (JAMB 2009)

A. a mixed economy
B. subsistence economy
C. market economy
D. command economy