5 Questions
Which of the following best describes a market economy compared to a centrally planned economy?
In a market economy, firms and households drive the economy with minimal government intervention, while in a centrally planned economy, the government makes economic decisions.
What is the role of institutions in a market economy?
Institutions enforce property rights and maintain the rules of the market.
What is productivity?
The ability of a country to produce goods and services.
Which of the following statements is true about a market economy?
Prices and the flow of goods and services are regulated by institutions.
What is the main difference between a market economy and a centrally planned economy?
The level of government intervention in the economy.
Test your knowledge on the difference between market economies and centrally planned economies. Explore the roles of government intervention and economic decision-making in these two economic systems.
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