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CodeVID-M11-WS
Types of Economies — Practice Worksheet
Chapter: Types of Economies
Topic: Types of Economies
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
The way a country organises to answer the central problems is its:
  • A.Economic system
  • B.Budget
  • C.Tax
  • D.Market
2.
The three main types of economy are capitalist, socialist and:
  • A.Mixed
  • B.Foreign
  • C.Closed
  • D.Digital
3.
In a capitalist economy, resources are:
  • A.State owned
  • B.Privately owned
  • C.Unowned
  • D.Owned abroad
4.
In a capitalist economy, decisions are guided by the:
  • A.Central plan
  • B.Price mechanism
  • C.Government only
  • D.Foreign aid
5.
A major demerit of capitalism is:
  • A.Efficiency
  • B.Wide inequality
  • C.Consumer choice
  • D.Innovation
6.
In a socialist economy, the means of production are owned by the:
  • A.Private firms
  • B.State (society)
  • C.Foreigners
  • D.No one
7.
Decisions in a socialist economy are taken by:
  • A.A central planning authority
  • B.The price mechanism
  • C.Private firms
  • D.Advertisers
8.
The main motive of a socialist economy is:
  • A.Profit
  • B.Social welfare and equality
  • C.Competition
  • D.Luxury production
9.
A demerit of socialism is:
  • A.Less inequality
  • B.Loss of freedom and weak incentives
  • C.No exploitation
  • D.Stability
10.
An economy combining private and public sectors is a:
  • A.Capitalist economy
  • B.Socialist economy
  • C.Mixed economy
  • D.Closed economy
11.
India is an example of a:
  • A.Pure capitalist economy
  • B.Pure socialist economy
  • C.Mixed economy
  • D.Closed economy
12.
The USA is mainly an example of a:
  • A.Socialist economy
  • B.Capitalist economy
  • C.Closed economy
  • D.Planned economy
13.
A developed economy usually has:
  • A.High per-capita income
  • B.Very low income
  • C.Only agriculture
  • D.No industry
14.
A developing economy depends relatively more on:
  • A.Agriculture
  • B.Space technology
  • C.Luxury exports
  • D.Foreign aid only
15.
The goal of a developing economy is growth with:
  • A.Social justice
  • B.More inequality
  • C.Less output
  • D.No planning
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
A country where the price mechanism decides what to produce, with little government interference, is closest to:
  • A.Capitalism
  • B.Socialism
  • C.A planned economy
  • D.A closed economy
17.
Critics say capitalism produces luxuries for the rich while ignoring necessities for the poor. This reflects its demerit of:
  • A.Inequality and neglect of those who cannot pay
  • B.Too much planning
  • C.No profit motive
  • D.State ownership
18.
A socialist economy may suffer low productivity mainly because removing the profit motive weakens:
  • A.The incentive to work hard and innovate
  • B.State ownership
  • C.Central planning
  • D.Equality
19.
India's combination of large private industry with public-sector railways, regulation and welfare schemes makes it a:
  • A.Mixed economy
  • B.Pure capitalist economy
  • C.Pure socialist economy
  • D.Closed economy
20.
The mixed economy is popular because it tries to capture capitalism's ____ and socialism's ____.
  • A.Efficiency; equality
  • B.Inequality; inefficiency
  • C.Planning; profit
  • D.Poverty; luxury
21.
A country with low per-capita income, heavy dependence on farming, and high unemployment is best called a:
  • A.Developing economy
  • B.Developed economy
  • C.Capitalist-only economy
  • D.Socialist-only economy
22.
Government-fixed prices and the absence of a free market are features most associated with:
  • A.Socialism
  • B.Capitalism
  • C.A mixed economy's private sector
  • D.Perfect competition
23.
The chief difficulty in running a mixed economy is:
  • A.Striking the right balance between the private and public sectors
  • B.Having no private firms
  • C.Banning the government
  • D.Removing all planning
24.
Greater economic stability (fewer booms and slumps) is often claimed as a merit of:
  • A.Socialism (central planning)
  • B.Pure capitalism
  • C.No economic system
  • D.Free markets only
25.
Why do almost no pure capitalist or pure socialist economies exist today?
  • A.Each extreme has serious drawbacks, so countries adopt a mix
  • B.They are illegal
  • C.They have no resources
  • D.Markets were abolished

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (A) Economic system
  2. (A) Mixed
  3. (B) Privately owned
  4. (B) Price mechanism
  5. (B) Wide inequality
  6. (B) State (society)
  7. (A) A central planning authority
  8. (B) Social welfare and equality
  9. (B) Loss of freedom and weak incentives
  10. (C) Mixed economy
  11. (C) Mixed economy
  12. (B) Capitalist economy
  13. (A) High per-capita income
  14. (A) Agriculture
  15. (A) Social justice
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Capitalism
  2. (A) Inequality and neglect of those who cannot pay
  3. (A) The incentive to work hard and innovate
  4. (A) Mixed economy
  5. (A) Efficiency; equality
  6. (A) Developing economy
  7. (A) Socialism
  8. (A) Striking the right balance between the private and public sectors
  9. (A) Socialism (central planning)
  10. (A) Each extreme has serious drawbacks, so countries adopt a mix
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