Collectives in the Soviet Union were inefficent producers of agricultural products. Why?
a) The farmers were too small to produce substantial crops
b) Most farmers were poor and had to pay for their own equipment, seeds, and fertilizer out of their own pockets
c) Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops
d) Soviet central planners ignores the farms in favor of factories producing consumer goods
Ans: c) Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops
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A shift in the supply curve for gasoline in the United States would result if
a. people decided to travel more by automobile. b. the OPEC nations decided to stop sales of crude oil to the United States. c. the price of gasoline increased. d. the price of gasoline decreased.
Which of the following macroeconomic variables would likely be affected by a fiscal policy?
a. The nominal interest rate b. The exchange rate c. The discount rate d. Employment e. Money supply
If the economy is at full employment, then an increase in government spending:
A. would simply crowd out private spending. B. would have too large an impact on real growth. C. would cause deflation, which would increase unemployment. D. is the right fiscal policy response.
The most important characteristic of the equilibrium price is that it:
A. guarantees that producers earn profit. B. clears the market. C. increases the quantity demanded. D. decreases the quantity demanded.