Perfect central planning is nearly impossible for all of these reasons except:
a. production processes between industries are often interdependent
b. some processes must be decided together, and not individually, because of their interdependence.
c. if the output target for one industry is adjusted, many others must also be adjusted.
d. all of these reasons are correct.
d
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For this question, assume that the aggregate production function is represented by Y = AN. Which of the following represents the price setting relation for this economy?
A) (1 + m)A B) (1 + m)A/W C) (1 + m)W D) W/A E) none of the above
In Table 17.1, Brazil has 
A. an absolute and comparative advantage in coffee. B. an absolute and comparative advantage in both goods. C. an absolute advantage but not a comparative advantage in coffee. D. an absolute and comparative advantage in apples.
Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because
A) less efficient and less productive workers are hired. B) adding more workers exhausts the possible gains from specialization. C) the entrepreneur does not know how to manage more workers. D) each worker will produce more than the worker previously hired. E) the plant becomes less specialized.
Money income is
A) market income plus cash payments from government. B) equal to market income. C) market income plus cash payments from government minus taxes. D) market income minus taxes.