Economics - Capitalism MCQ Test 1

1. Who coined the term 'invisible hand' in the context of market dynamics?

2. What is the role of capital markets in a capitalist economy?

3. Which economic theory suggests that government spending and taxation policies can influence economic activity and stabilize fluctuations in the business cycle?

4. What is the primary goal of antitrust laws in a capitalist economy?

5. Who is often considered the father of modern capitalism?

6. Which economic term refers to the increase in the general price level of goods and services over time?

7. Which economic term refers to the difference between a country's exports and imports?

8. Which country is often associated with the development of state capitalism?

9. Which economic concept refers to the measure of how responsive quantity demanded is to a change in price?

10. What is a characteristic of free market capitalism?

11. Which economic system emphasizes the collective ownership of resources and production?

12. Which statement best describes the concept of 'invisible hand' in capitalism?

13. What role do interest rates play in influencing investment decisions in a capitalist economy?

14. What is the primary feature of a market economy?

15. What is the primary focus of behavioral economics in relation to capitalism?

16. What is the primary function of prices in a market economy?

17. Which economic term refers to the total value of a company's shares of stock?

18. In capitalism, prices are primarily determined by:

19. Which term refers to the concentration of wealth and power in the hands of a small group of individuals or corporations?

20. Which economic term refers to the excess of government expenditures over revenues?

21. Which economic term refers to the rate at which one currency can be exchanged for another?

22. What economic concept refers to the total value of goods and services produced by a country in a given year?

23. What is the primary concern of social economics in relation to capitalism?

24. What is a defining characteristic of a market economy within capitalism?

25. Which term refers to the ownership of production and distribution by private individuals or corporations?

26. Which economic theorist is known for his critique of capitalism's inherent contradictions?

27. Which economic term refers to the potential loss of total output due to inefficient allocation of resources in a market economy?

28. What economic theory advocates for minimal government intervention in the economy and emphasizes individual self-interest and free markets?

29. What economic term refers to the situation where a single firm or group dominates a market, often leading to reduced competition and higher prices?

30. What is the primary objective of antitrust laws in a capitalist economy?

31. Which economic term refers to the total value of goods and services traded between countries?

32. Which term refers to the total value of goods and services produced in a country within a given time frame?

33. What is a potential challenge for implementing free trade policies in a capitalist economy?

34. Which economic system prioritizes collective ownership of the means of production?

35. What economic term describes the process of converting government-owned enterprises into privately-owned businesses?

36. Which economic term refers to the situation where the quantity of a product demanded by consumers exceeds the quantity supplied by producers?

37. What is a potential challenge for capitalism?

38. What economic theory suggests that individuals act based on rational self-interest, leading to efficient market outcomes?

39. What is a potential consequence of income inequality in a capitalist society?

40. What is the 'Invisible Hand' in the context of capitalism?

41. Which economic concept refers to the rate at which one currency can be exchanged for another?

42. What is the primary feature of capitalism?

43. Which economic system emphasizes private ownership of resources and minimal government interference?

44. What is the role of the government in a capitalist economy?

45. What is a potential benefit of capitalism?

46. Which economic term refers to the total amount of money in circulation within a country's economy, including cash, deposits, and other liquid assets?

47. What is the economic term for the total value of all final goods and services produced within a country in a specific period?

48. Which economic indicator measures the total value of goods and services produced within a country's borders in a given period?

49. What is a characteristic of a perfectly competitive market in a capitalist economy?

50. Which economic concept refers to the situation where a market fails to allocate resources efficiently?