Collectives in the Soviet Union were inefficient producers of agricultural products. Why?
(A) The farms were too small to produce substantial crops.
(B) Most farmers were poor and ad to pay for their own equipment, seeds, and fertilizer out of their own pockets.
(C) Soviet central planners ignored the farms in favor of factories producing consumer goods.
(D) Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops.
Ans: (D) Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops.
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Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the price of an input b. An increase in productivity c. An increase in the price of a substitute in production d. A decrease in the expected future price of a product e. A decrease in the current price of the product
Incentives are
A) potential rewards available if a particular activity is undertaken. B) ineffective as a device to get people to behave in a certain fashion. C) inappropriate ways to obtain a certain kind of behavior. D) useless when people behave rationally.
Bureaucrats deciding what products should be sold in stores is a feature of a
a. traditional economy b. command economy c. market economy d. capitalist economy
What is the primary reason that the highest quintile's share of the national income increased very rapidly over the last 20 years?
A. Poor people are lazy and do not want to work. B. All of our jobs have been shipped overseas. C. Tax cuts on the property owners and high income citizens. D. High cost of health care.