MCQ - 第二单元 - 3. competitive market

Question 1

Q1 What is an economist’s definition of a market?

1. a collection of informal retail outlets run by small firms
2. a place where traders gather regularly for short periods
3. a system that enables individuals and firms to buy and sell goods
4. the existence of consumer demand for a good

Answer 1

C

Question 2

Q2 What is an advantage of competitive markets?

1. Competition causes inequalities of wealth.
2. Competition encourages the efficient use of resources.
3. The economic problem of scarcity is eliminated.
4. The right quantity of merit goods is guaranteed.

Answer 2

B

Question 3

Q3 What is an essential feature of a market economy?

1. Central planners determine what, how and for whom to produce.
2. It aims for equality in the distribution of goods and services.
3. The market price reflects both the private and external costs of production.
4. The price mechanism sends signals to consumers and producers to allocate resources.

Answer 3

d

Question 4

Q4 What is an advantage of a market economy in the allocation of resources?

1. It ensures that all consumers are willing to pay the same price.
2. It fixes prices based on costs of production.
3. It guarantees suppliers will make a profit.
4. It indicates the relative demand for goods and services.

Answer 4

d

Question 5

Q5 What necessarily describes the market system?

1. an economy with both a private and public sector
2. limited resources but unlimited wants
3. resources are allocated through demand and supply
4. when all resources are used to produce consumer goods

Answer 5

C

Question 6

Q6 What is the function of the price mechanism in a market economy?

1. allocating resources and guiding choices
2. allowing governments to provide price stability
3. enabling markets to operate fairly
4. preventing competitors from entering a market

Answer 6

A

Question 7

Q7 What is a function of the price mechanism?

1. to allocate goods and services
2. to calculate national expenditure
3. to ensure an equal distribution of income
4. to guide government policy decisions

Answer 7

A