Basic Economic Problems of Society - SS1 Economics Past Questions & Answers - page 1

1

Which of the following is NOT one of the basic economic problems of society?

A

How to produce

B

When to produce

C

For whom to produce

D

What to produce

 

CORRECT OPTION: b
2

The problem of deciding on the best way to produce goods and services is known as:

A

What to produce

 

B

How to produce

C

For whom to produce

D

The efficiency of resource use

 

CORRECT OPTION: b
3

Which economic system relies on the price system to determine who gets what?

A

Market economy

 

B

Command economy

C

Mixed economy

D

Traditional economy

CORRECT OPTION: a
4

Which economic problem refers to making the best use of available resources to maximize production and minimize waste?

A

What to produce

 

 

B

How to produce

C

For whom to produce

D

Efficiency of resource use

CORRECT OPTION: d
5

Which of the following is a factor that influences a society's choices about what to produce?

A

Resources

 

 

B

Culture

C

Preference

D

All of the above

CORRECT OPTION: d
6

In a command economy, who decides who gets what?

A

The market

B

The government

 

 

C

The people

D

No one

CORRECT OPTION: a
7

Which economic system relies on the government to decide who gets what based on social and political criteria?

A

Market economy

 

B

Command economy

C

Mixed economy

D

Traditional economy

 

CORRECT OPTION: b
8

Define the basic economic problem of "What to produce."

 

 

This refers to the problem of deciding which goods and services to produce and in what quantity.

9

Name one factor that influences a society's choices about what to produce.

 

One factor that influences a society's choices about what to produce is Culture.

 

10

Explain the problem of deciding who should receive the goods and services produced.

 

 

This refers to the problem of deciding who should receive the goods and services produced. In a market economy, the price system determines who gets what, based on the ability and willingness to pay. In a command economy, the government decides who gets what based on social and political criteria.

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