According to the 1974 Constitution of the former Yugoslavia, nobody in Yugoslavia owns resources. Being a socialist country, the constitution claimed resources were owned by "society" as a whole. According to the economic way of thinking,
A) their economic problem would be solved.
B) resources would finally be used efficiently, because the profit motive would be destroyed.
C) people would use Yugoslavia's resources wastefully because they themselves wouldn't have to pay the opportunity cost.
D) the central planners would know how to calculate the true values and costs of resource use.
C
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If a firm wants to finance a new project, it can obtain financing by
A) using its retained earnings. B) issuing and selling new shares of stock. C) selling corporate bonds to the public. D) all of the above.
The required reserve ratio is 20%. The money multiplier is
A. 2. B. 4. C. 5. D. 10.
The job of a(n) ___________ is to impose a settlement.
Fill in the blank(s) with the appropriate word(s).
Hyperinflation is defined as
A) declining inflation rates. B) rising but low inflation rates. C) very high inflation rates. D) very low inflation rates.