Prior to the collapse of communism, communist countries worked on the premise that economic well-being could be best attained by
a. a market economy.
b. a strong reliance on prices and individuals' self-interests.
c. a system of large privately-owned firms.
d. the actions of government central planners.
d
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When pricing is used to limit entry, it is often described as
A) effective. B) predatory. C) exclusive. D) aggressive.
Which of the following statements is correct about neoclassical economists?
a. Neoclassical economists emphasize Say’s law, which holds that supply creates its own demand. b. Neoclassical economists emphasize Keynes’ law, which holds that supply creates its own demand. c. Neoclassical economists emphasize Say’s law, which holds that demand creates its own supply. d. Neoclassical economists emphasize Keynes’ law, which holds that demand creates its own supply.
How does a budget deficit lead to a trade deficit?
A. The trade deficit triggers higher interest rates, which increase the budget deficit. B. The budget deficit leads to higher interest rates and exchange rates, which shrink net exports. C. The trade deficit causes lower interest rates, which leads to economic recession and a budget deficit. D. The budget deficit causes lower exchange rates, which decrease net exports.
In pre-colonial Central America, the cocoa seed served as a medium of exchange. The use of cocoa seed for transactions was possible because it was:
A. generally accepted among the native Indians. B. not heavy and bulky. C. also suitable for eating. D. easy to grow.