Describe China's reform path, including the forces that started China's reform efforts and how they continued through the 1980s and early 1990s
What will be an ideal response?
A long period of instability and disappointment with the economic results achieved under communism led to reform to create more wealth to distribute; it has been a gradual, steady dismantling of the controls exercised by the state and party over the economy. The first reforms were in agriculture, allowing more individual ownership and control over plots of land. Trade was gradually opened through special economic zones. Eventually other regions pushed for similar policies. China applied to join the WTO in 1986 and joined after a protracted period of negotiations which probably kept economic reforms moving forward.
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
A person will choose to work another hour if the benefit of another hour of work is:
A. greater than the opportunity cost. B. exactly equal to the opportunity cost. C. less than the opportunity cost. D. exactly equal to the average total cost to the firm.
The Global Positioning System (GPS) is an example of a good that is both non-rival and excludable good.
A. True B. False C. Uncertain
If the total cost of producing 300 leather jackets is $400 and the total cost of producing 301 leather jackets is $435, what is the marginal cost of production at 300 leather jackets?
(A) $835 (B) $435 (C) $35 (D) $400