15 MCQ on Current Discourse on State and Market with answers
15 MCQ on Current Discourse on State and Market with answers
1. What is the primary focus of the discourse on 'State and Market' in contemporary times?
a) Advocacy for state-controlled economies
b) Analysis of the interplay between government and market forces
c) Promotion of laissez-faire capitalism
d) Emphasis on socialist economic principles
Answer: b) Analysis of the interplay between government and market forces
2. Which of the following statements best describes the role of the state in market economies?
a) The state plays a passive role, intervening minimally in market activities.
b) The state has no role in market economies.
c) The state actively regulates and participates in market activities.
d) The state controls all aspects of the market.
Answer: c) The state actively regulates and participates in market activities.
3. What is the term used to describe the belief in minimal government intervention in the economy?
a) Statism
b) Socialism
c) Laissez-faire
d) Communism
Answer: c) Laissez-faire
4. Which economic system advocates for public ownership of the means of production and central planning?
a) Capitalism
b) Socialism
c) Communism
d) Mixed economy
Answer: b) Socialism
5. In a mixed economy, what role does the government typically play in relation to the market?
a) Government controls all aspects of the economy.
b) Government is entirely absent from economic activities.
c) Government regulates certain sectors and provides public goods and services.
d) Government only intervenes during economic crises.
Answer: c) Government regulates certain sectors and provides public goods and services.
6. Which economic theory argues that the state should take a more active role in correcting market failures and promoting social welfare?
a) Neoliberalism
b) Keynesianism
c) Monetarism
d) Supply-side economics
Answer: b) Keynesianism
7. What is the term used to describe the process of privatizing state-owned enterprises and deregulating markets?
a) Nationalization
b) Regulation
c) Privatization
d) Socialization
Answer: c) Privatization
8. Which of the following is a criticism often leveled against neoliberal economic policies?
a) Overregulation stifles innovation.
b) Market fundamentalism leads to inequality and social unrest.
c) Government intervention boosts economic growth.
d) State-owned enterprises are more efficient than private firms.
Answer: b) Market fundamentalism leads to inequality and social unrest.
9. Which economist is associated with the concept of the "invisible hand" guiding the market?
a) John Maynard Keynes
b) Karl Marx
c) Adam Smith
d) Milton Friedman
Answer: c) Adam Smit
10. What does the term "crony capitalism" refer to?
a) A system where the state owns all major industries.
b) A system where political connections and favors play a significant role in business dealings.
c) A system where markets operate with no government intervention.
d) A system where all businesses are cooperatively owned by their workers.
Answer: b) A system where political connections and favors play a significant role in business dealings.
11. Which country is often cited as an example of successful state-led development through industrial policy?
a) United States
b) China
c) Germany
d) United Kingdom
Answer: b) China
12. What is the term used to describe the process of shifting economic activities from the public sector to the private sector?
a) Nationalization
b) Privatization
c) Socialization
d) Centralization
Answer: b) Privatization
13. Which economic theory suggests that the government should focus on controlling the money supply to regulate the economy?
a) Keynesianism
b) Monetarism
c) Neoliberalism
d) Marxism
Answer: b) Monetarism
14. Which of the following is a characteristic of a centrally planned economy?
a) Private ownership of the means of production
b) Decentralized decision-making by individual firms
c) Government control over resource allocation and production decisions
d) Absence of government intervention in the economy
Answer: c) Government control over resource allocation and production decisions
15. What is the term used to describe the situation where the production of goods and services is determined primarily by consumer demand and market forces?
a) Command economy
b) Market economy
c) Mixed economy
d) Socialist economy
Answer: b) Market economy
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