In spite of limited free market reforms, which country remains essentially a communist system?
A. Cuba, as shown by the heavy taxes on the expected earnings, not actual sales, of private enterprises
B. Cuba, as shown by the legalization of the U.S. dollar to earn foreign exchange
C. Russia, as shown by the allowance of supply and demand to set higher prices for basic consumer goods
D. Russia, as shown by the streets choked with foreign cars
Answer: A
You might also like to view...
If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure above, then the deadweight loss will equal
A) $0. B) $4 million. C) $8 million. D) $12 million.
If the demand curve is given by Q = a + bp, then a is
A) negative. B) the quantity demanded when price is zero. C) the slope of the demand curve. D) measured in money.
Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as
A) fixed exchange rates. B) gold exchange rates. C) flexible exchange rates. D) IMF exchange rates.
The vertical and horizontal axes intercepts of the budget line represent the:
a. quantity of goods that will be purchase if only that good is purchased. b. preference of one good compared to another good. c. quantity of each good that is outside the consumer's income. d. only two choices that will spend the entire budget.