QUESTIONS

1. How do businesses contribute to government revenue and public

services?
Answer b: Through taxes paid on profits, income, and property.

2. What role do businesses play in ensuring compliance with regulations

and laws?
Answer c: Training employees on compliance measures.

3. Why is it important for businesses to engage in collaboration and

dialogue with policy makers?
Answer c: To advocate for policies that align with their interests and
objectives.

4. How does payment of taxes contribute to the functioning of

government?
Answer b: By funding public services and infrastructure.

5. What are the consequences of businesses failing to comply with

relevant regulations and laws?
Answer c: Fines and penalties.
 6. What are some common regulations that businesses need to comply
with?
Answer a: Tax laws, labor laws, and environmental regulations.

7. How does a planned economic system differ from a traditional one,

in terms of decision-making?
Answer a: Government control over economic decisions in a planned
economy, while traditional economies rely on market forces.

8. What defines a traditional economic system, and how does it allocate

resources?
Answer c: Relying on customs, traditions, and cultural beliefs, allocating
resources based on societal norms and practices.

9. What advantages does a traditional economic system offer in terms

of stability?
Answer b: Preservation of cultural heritage.

10. What is the primary basis for decision making in a traditional

economic system?

Answer: b) Reliance on customs, traditional, and cultural beliefs

 11. Why might traditional economies experience limitations in
economic growth?
Answer c: Resistance to adopting new technologies and methods.

12. What advantage does a planned economic system offer in terms of

stability?
• Answer c: Stability during economic uncertainty

13. What disadvantage is commonly associated with traditional economic

systems regarding economic growth?
• Answer: c) Limited economic growth potential

14. What distinguishes a planned economic system from other systems in

terms of decision-making?
• Answer: a) Central government control over economic decision-
making

15. Which disadvantage is typically associated with planned economic

systems regarding incentives?
• Answer: a) Lack of incentives for innovation
16. What key characteristic defines a mixed economic system
• Answer: c) Combination of government intervention and market forces

17. What advantage does a mixed economic system provide in terms of

decision-making?

• Answer: c) Balanced approach between government intervention and

market forces

18. What is a common disadvantage of mixed economic systems

concerning regulations?

• Answer: c) Regulatory burden and bureaucracy

19. What role does central planning play in a planned economic system’s
decision-making?

• Answer: d) Dictating production, distribution, and pricing of goods and

services

20. What is the primary basis for resource allocation in traditional

economic systems?
 • Answer: d) Allocation of resources based on customs and
traditions