Which of the following statements is true for a command economy?
A. Manufacturers decide what is produced.
B. The state decides how to distribute what is produced.
C. Consumers have no choice concerning what they buy.
D. The amount of a good supplied always equals the amount of the good demanded.
Answer: B
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In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:
A. inflation. B. deflation. C. stagflation. D. hyperinflation.
Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease and sets a fine for those people who do not buy insurance. It follows that if the fine is
A) larger than the benefits derived from not buying insurance right away, then people will not buy the insurance and pay the fine. B) smaller than the benefits derived from not buying the insurance right away, then people will not buy the insurance and pay the fine. C) larger than the benefits derived from not buying insurance right away, then people will buy the insurance right away and not pay the fine. D) b and c E) none of the above
Refer to the graph shown. The relationship represented in the figure is called a:
A. labor demand curve. B. short-run Phillips curve. C. labor supply curve. D. long-run Phillips curve.
Currency held outside banks is included in
A. M2 only. B. neither M1 nor M2. C. M1 only. D. both M1 and M2.