(A) The government should concentrate on reducing unemployment () (B) More spending by the government reduces poverty (X)
(C) Higher taxes lead to less desire to work (X)
(D) The Pakistan’s economy is growing fast relative to other SAARC members (X)
Answers: The government should concentrate on reducing unemployment
(A) The price mechanism acts as an incentive (X) (B) Resources are allocated by market forces () (C) Individual firms make decisions for themselves about what to produce and how to produce it (X)
(D) The public sector is large (X)
Answers: In a command (planned) economy Resources are allocated by market forces.