Which of the following statements best describes production outcomes in the Soviet Union and pre-reform China?
A. Output was often high quality but insufficient in quantity because production managers were rewarded only for meeting quality standards.
B. Output was generally high quality and sufficient in quantity because of the well-specified economic plans.
C. Output was often low quality because production managers were rewarded only for meeting quantitative production targets.
D. Output was of variable quality but sufficient in quantity because market signals were only consistent in telling managers how much to produce.
Answer: C
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The recent trend internationally has been for the executive and legislative branches of elected governments to get more control over monetary policy, as has been the case in countries such as the United States
Indicate whether the statement is true or false
Last year a country had exports of $100 billion, imports of $70 billion, and purchased $60 billion worth of foreign assets. What was the value of domestic assets purchased by foreigners?
a. $70 billion b. $40 billion c. $30 billion d. $10 billion
Suppose the U.S. dollar is defined by law as being equal to 0.1 ounce of gold. Further suppose the British pound is defined as being equal to 0.05 ounce of gold. The implied exchange rate between the pound and the dollar is
A. A fixed rate at which $1 = 2 pounds. B. A flexible rate at which $2 = 1 pound. C. A fixed rate at which $2 = 1 pound. D. A flexible rate at which $1 = 2 pounds.
A real shock is shown in the AD/AS model as:
A. a shift in the AD curve only. B. a shift in the LRAS curve only. C. a shift in the LRAS, SRAS, and AD curves. D. a shift in both the LRAS and SRAS curves.