In a centrally planned economy;
(a) All resources are allocated by the government based on consumer choice.
(b) Those with the highest skill levels receive more income than those with the lowest skill levels.
(c) All resources are allocated by the government based on their decisions.
(d) There are significant incentives to engage in private enterprise
Answer: (c) All resources are allocated by the government based on their decisions.
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The Basel Accord requires banks to hold as capital an amount that is at least ________ of their risk-weighted assets
A) 10% B) 8% C) 5% D) 3%
A black market may occur when
A) the government imposes a price floor below the market clearing price. B) the government imposes a price ceiling below the market clearing price. C) the government imposes a price ceiling above the market clearing price. D) the government does not impose either a price ceiling or a price floor.
The price index that refers to all final goods and services produced in a country is the
A. GDP inflator. B. GDP deflator. C. CPI. D. PPI.
An increase in the price level in the aggregate expenditures model would:
A. Decrease aggregate expenditures and shift the AD curve to the left B. Increase aggregate expenditures and shift the AD curve to the right C. Decrease aggregate expenditures but would not shift the AD curve D. Increase aggregate expenditures but would not shift the AD curve