A centrally planned economy encourages investment and innovation.
Answer the following statement true (T) or false (F)
False
Centrally planned economies seem to do poorly in the long run. Top-down management reduces insecurity, but at the cost of reducing incentives to innovate and make improvements.
You might also like to view...
This Application discusses the ________ and its enforcement of international trade laws
A) World Trade Organization B) General Agreement on Tariffs and Trade C) European Union D) North American Free Trade Agreement
Refer to Scenario 12.2. In this game, if both players end up playing their weak strategies, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
Which requirement for perfect competition rules out trade associations or other collusive arrangements in which firms work together to influence price?
a. Freedom of entry and exit. b. Homogeneity of product. c. Perfect information. d. Numerous small firms and customers.
Suppose that when price is $10, quantity supplied is 20. When price is $6, quantity supplied is 12 units. The price elasticity of supply is:
A. 0.5. B. 0.8. C. 1.0. D. 1.5.