In a command economy, resources are publicly owned by government and economic activity is coordinated through a central government planning authority
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If regulators disallow price increases requested by a natural monopoly that is currently earning an economic loss, quality of service will
A) increase rapidly. B) likely fall. C) remain unchanged. D) none of the above.
When a market is characterized by an externality, the government
a. can correct the market failure only in the case of positive externalities. b. can correct the market failure only in the case of negative externalities. c. can correct the market failure in the case of both positive and negative externalities by inducing market participants to internalize the externality. d. cannot correct for externalities due to the existence of patents.
The prevalent welfare policy is to
A. provide vocational training for welfare recipients, so that they can be self-supporting. B. provide government and private sector employment for those leaving the welfare rolls. C. to basically force welfare recipients to leave the welfare rolls. D. to allow welfare recipients to continue receiving benefits as long as there are children under six years of age in the family.
If the demand curve is perfectly elastic, the burden of a tax on suppliers is borne:
A. partly by the suppliers and mostly by the consumers if the supply curve is elastic. B. mostly by the suppliers and partly by the consumers if the supply curve is inelastic. C. entirely by the consumers. D. entirely by the suppliers.