Free enterprise economy - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1991

in market economy, the question of what, how and for whom to produce are solved the

A. Elected representative of the solved
B. Planning committe
C. Price mechanism
D. Government

Question 12:

• JAMB 1992

Which of the following is applicable in a wholly capitalist economy?

A. There is government intervention in price determination
B. Consumer sovereignty does not exist
C. The price mechanism allocates resources
D. Households cannot freely decide what to spend on goods and services

Question 13:

• JAMB 1995

In a free market economy, available resources are more efficiently allocated by complete reliance on?

A. Development planning
B. Strategic planning
C. Capital budgeting
D. Price system

Question 14:

• JAMB 1997

One of the features of a free market economy is that?

A. Resources are directed by the price mechanism
B. Workers do not earn equal wages
C. The profit motive is serverly constrained
D. Descisions on the economy are taken by bureaucratic structures

Question 15:

• JAMB 1997

One of the fundamental differences between a capitalist and a socialist economy is that while?

A. The former is characterized by complete government ownership of resources, the latter characterized by complete private ownership
B. In the former, prices act as signals in the allocation of resources, it is central authority that performs this function in the letter
C. Taxes are levied in a capitalist economy, there is no taxation in a capitalist economy
D. Income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy