What has been the reaction of many governments to the failure of central planning?
What will be an ideal response?
The failure of many central planning efforts has brought increasing calls for less government intervention and more market orientation. It has included elimination of price controls, privatization of state-run enterprises, and reductions in import restraints.
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For a good whose production creates a pollution, when marginal social cost equals marginal social benefit, then
I there is no pollution. II resources are utilized efficiently. A) I only B) II only C) neither I nor II D) both I and II
A manufacturer produces two types of computer software, Word processing (W) and Spreadsheet (S), which is offered to two different retail outlets (#1 and #2). The following table shows the maximum price each retail outlet is willing to pay for each individual software product. Product W Product S Retail #1 $170 $105 Retail #2 $95 $135 What is the optimal pricing strategy that will maximize
revenue for the manufacturer, given the maximum the retail outlets are willing to pay? a. Bundle both products (W and S) and sell them at $230. b. Price product W at $170 and Product S at $135. c. Price product W at $170 and Product S at $170. d. Price product W at $95 and Product S at $105. e. Bundle both products (W and S) and sell them at $275.
Think about indifference analysis. If a consumer is indifferent between 5 units of A and 8 units of B, then the consumer would
a. also be indifferent between 4 units of A and 9 units of B b. also be indifferent between 8 units of A and 5 units of B c. prefer 6 units of A and 8 units of B d. give up 1 unit of A to acquire 2 units of B e. not trade a unit of A for any units of product B
The Federal Reserve System
A. oversees the Congress and Senate. B. is a branch of the Commerce Department. C. is the central bank of the United States. D. controls the Treasury Department.