The goal of socialist economies is to distribute what is produced according to the needs of individuals. Market economies tend to distribute what is produced according to ability and effort.
Answer the following statement true (T) or false (F)
True
Under socialism, individuals give according to their ability and receive according to their need. Under a market economy, what one receives is a function of one's ability, effort, and inheritance.
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If government imposes a price ceiling on a good that is below the market equilibrium price
A) a surplus will develop. B) a shortage will develop. C) producers will reduce their sales price. D) consumers will reduce their demand for the good.
An increase in the reserve requirement from 20 percent to 25 percent is most likely to:
a. reduce total deposits in the banking system. b. reduce excess reserves and the deposit expansion multiplier. c. increase the money supply. d. reduce the amount of reserves required. e. increase total deposits and the deposit expansion multiplier.
The elasticity of variable G with respect to variable S is defined as:
A. the percentage change in variable G that results from a given change in variable S. B. the percentage change in variable G that results from a given percentage change in variable S. C. the change in variable G that results from a given change in variable S. D. the change in variable G that results from a given percentage change in variable S.
Suppose that in the beginning of 2016 the federal debt was $11 trillion and at the end of 2016, the federal debt was $11 trillion. During 2016
A. the government balanced its budget. B. the budget surplus was zero. C. the budget deficit was zero. D. all of the above