With respect to property rights and production, explain the differences between the economic organizations known as communism, capitalism, and socialism
What will be an ideal response?
With communism, all property is held in common and the government decides what to produce and how to distribute the production.
With capitalism, productive resources are privately owned by individuals who independently decide what to produce.
With socialism, individuals may own private property but the government owns and operates productive resources.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The property of money that allows us not to worry about "using it before it spoils" is called the
A. medium of exchange. B. store of value. C. security of value. D. creation of value.
Describe the political power cost of large capital flows into low-income countries
What will be an ideal response?
Use the following general linear demand relation:Qd = 100 - 5P + 0.004M - 5PRwhere P is the price of good X, M is income, and PR is the price of a related good, R.From the demand function it is apparent that related good R is
A. normal. B. inferior. C. a substitute for good X . D. a complement for good X.