18 Questions
What is a key characteristic of a planned economy?
Central Planning
In a planned economy, who often owns and controls the means of production?
Government
What is typically set by the government in a planned economy?
Prices for goods and services
Which economic system is often associated with socialist or communist political systems?
Planned economy
What major challenge have many countries with planned economies faced?
Shortages and surpluses
Which factor is typically limited for consumers in a planned economy?
Consumer choice
In a planned economy, who typically owns the means of production?
Government
What is a key characteristic of a planned economy related to production targets?
Production targets are set by a central authority
How does a planned economy affect consumer choice compared to a free market economy?
Less variety and fewer options for consumers
What is one consequence of the government setting prices in a planned economy?
Prices that do not reflect supply and demand
How does resource allocation occur in a planned economy?
According to the central plan set by the government
What impact does reduced competition have in a planned economy?
Decreased efficiency and innovation
Which economic system allows individuals to own resources like land, labor, and capital?
Free Market Economy
In positive economics, what is the main focus?
Describing what is happening
Which type of economics involves making recommendations and judgments about policies?
Normative Economics
What is the main characteristic of a free market economy in terms of pricing?
Prices are influenced by supply and demand forces
Which economic system involves government intervention in determining prices?
Planned Economy
What aspect of an economy does the belief that 'wealthy individuals ought to pay higher taxes to support social welfare programs' relate to?
Wealth distribution
Test your knowledge on statements pertaining to different policy recommendations and value judgments. Explore the underlying beliefs and values behind each statement.
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