In a command economy, ________ establish(es) what will be produced and when, set(s) production goals, and make(s) rules for distribution.
A. only privately owned firms
B. a centralized authority
C. individuals and households
D. individuals, households and privately owned firms
Answer: B
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Which of the following is a reason for long-run potential growth of real GDP?
A) yearly growth of the labor force B) growth of the stock of physical capital over time C) improvements in technology over time D) all of the above
The Board of Governors of the Federal Reserve System does NOT
A) consist of seven members with fourteen-year terms. B) include the presidents of the twelve Federal Reserve Banks. C) utilize a system of rotations so that a position comes open every two years. D) consist of members whose appointments have been approved by the Senate.
The slope of a consumer's budget constraint is equal to: a. the consumer's income in the previous period divided by his income in the current period. b. the price of one good divided by the price of the other good
c. the ratio of the marginal utilities from two consecutive units consumed of a good. d. the price of one good divided by the present income of the consumer.
When discrimination occurs as a result of employer prejudice, discriminating firms do not maximize profits
a. True b. False Indicate whether the statement is true or false