Which of the following statements is true about a command economy?
a. Shortages occur because of complexities in the planning process.
b. Planners determine what, how many, and for whom goods and services are to be produced.
c. Planners often allocate goods and services through a rationing system.
d. The quality of produced goods and services tends to be inferior.
e. All of these are true.
e
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If the MPC = 0.75, then the spending multiplier must be:
A. 3 B. 4 C. 5 D. 1.25
Which of the following statements is true with respect to the concept of dumping in international trade?
a. Dumping is designed to sell off surplus goods, especially agricultural goods. b. Dumping leads to higher competition in the long run. c. Dumping is illegal in the United States. d. Dumping creates toxic wastes in the importing country. e. Dumping can only be practiced by a monopolist.
A decrease in the expected future income of the United States would likely:
A. shift its AD curve to the left. B. shift its AD curve to the right. C. make its AD curve steeper. D. make its AD curve flatter.
A point outside a production possibilities curve indicates
A) that resources are not being used efficiently. B) that resources are being used very efficiently. C) opportunity costs are constant. D) an output combination that is unobtainable with the current resource and technology levels.