Central planners in command economies
A. generally set production targets for firms.
B. always consult consumers on the output of goods they want to consume.
C. allow prices to organize the economy’s production.
D. depend upon the invisible hand to coordinate economic activities.
Answer: A
You might also like to view...
This Application addresses the idea that
A) imports ultimately have a positive impact on all communities. B) imports have a bigger impact on some communities than on others. C) imports are only beneficial to a community if they are equally matched by exports from that community. D) imports have an equal impact on all communities.
Beginning from a situation where there were no clear property rights to clean air and water: a. subsidies could not improve efficiency in cases of external benefits
b. subsidies could not improve efficiency in cases of external costs. c. taxes could not improve efficiency in cases of external costs. d. neither external benefits nor external costs could improve efficiency in either the case of external benefits or the case of external costs.
Budget deficits cause interest rates to be high
a. True b. False
A characteristic of monopolistically competitive industries is that:
A. the entry and exit of firms causes the representative firm to break even in the long run. B. the representative firm produces at that level of output where marginal cost equals minimum average total cost. C. the representative firm is not very responsive to changes in consumer demand. D. there is product differentiation but only limited advertising of products by the representative firm.