CAIE IGCSE Economics 2.8 Market Economic System Topic Practice

Question 1

[Maximum number: 1]

How are economic decisions determined in a market economic system?

A

by a mixture of market forces and government intervention

B

by central planners of production and consumption

C

by government regulation of the price mechanism

D

by the forces of demand and supply

Question 2

[Maximum number: 1]

What would a person believe who wished to encourage the use of the market system?

A

people should have equal living standards

B

people should have freedom of action

C

profit maximisation is wrong

D

the government should correct people's bad behaviour

Question 3

[Maximum number: 1]

Which pair of economic institutions can be found in a market economy?

A

charities and public sector firms

B

multinational companies and commercial banks

C

public sector firms and private sector firms

D

stock exchanges and government-funded hospitals

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