What is the main difference between a centrally planned economy and a market economy?
In a market economy, decisions are guided by prices and individual self-interest. In a centrally planned economy, economic activity is guided by the government.
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Which of the following markets would have the highest Herfindahl index? A market with
a. ten firms of widely different sizes b. ten firms of approximately the same size c. five firms of widely different sizes d. five firms of approximately the same size e. eight firms exactly the same size
Which of the following is an example of a natural monopoly?
a. Government b. The railway system c. An internet service provider d. An automobile manufacturer
A New York legislator wanted to create a deposit on cigarettes butts. If implemented, people would have the incentive to (1) not toss cigarette butts onto public streets and sidewalks, and (2) pick butts up to redeem them for the cash. The degradation of the environment from littered cigarette butts is a
a. private goods problem. b. Nash equilibrium. c. Tragedy of the Commons. d. cost-benefit equilibrium.
A low-income household is usually who?
a. one person living alone b. a family headed by a single parent c. a family headed by a young single female, poorly educated and not working d. all of the above represent most low income households