Which of the following is not a typical attribute of a socialist country?
A. Taxes are very high, particularly on the wealthy classes.
B. Production is guided by the price system.
C. Government owns some of the means of production.
D. Cradle-to-grave security for its citizens.
B. Production is guided by the price system.
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The Sherman Act of 1890 and the Clayton Act of 1914 were Antitrust Acts whose purposes included all of the following except
(a) The maintenance of a competitive economy (b) The prevention of monopolies, combinations and other conspiracies in restraint of trade (c) The prevention of price discrimination that reduces competition (d) The prevention of labor union activity that reduces competition in the labor market
Why is wage and price flexibility an important assumption of the classical model?
A) Flexible wages and prices guarantee that there will be no scarcity. B) Flexible wages and prices allow business firms to fool their workers through the money illusion. C) Flexible wages and prices allow business firms to fool their customers through the money illusion. D) Flexible wages and prices allow markets to reach equilibrium.
The government is undertaking a policy to deal with a monopoly. As a result, the monopoly's ATC curve is shifting upward. Most likely, which of the following policies is being used?
a. antitrust action b. a regulatory commission sets a fair price c. a regulatory commission sets a price equal to marginal cost d. laissez-faire e. encouraging concentration
What is the effect when there is an increase in the European inflation rate relative to the U.S. interest rate?
a. Europeans buy fewer dollars, shifting S1 to S2.
b. U.S. consumers buy more European goods, shifting D1 to D2.
c. Europeans supply euros to buy more dollars, shifting S1 to S2.
d. U.S. consumers demand more euros, shifting S1 to S2.