In a centrally planned economy, the concept of marginal cost
A) is important if planners want to achieve their objectives at the lowest possible cost.
B) is irrelevant because resources can be obtained by government decree.
C) is irrelevant because socialist firms do not have to earn profits.
D) is irrelevant if industries can be subsidized.
A
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According to Keynes, the effect on planned real investment spending resulting from the interest-rate impact of a decrease in the money supply
A) impacts the economy through the multiplier. B) does not impact the economy. C) impacts the economy by reducing the value of the U.S. dollar. D) impacts the economy by increasing the deficit.
All of the following are part of the "state health insurance marketplaces" provision of the Patient Protection and Affordable Care Act (ACA) except
A) small businesses with fewer than 50 employees are exempt from being required to participate in the program. B) the marketplaces offer health insurance policies that meet certain specified requirements. C) each state is required to establish an Affordable Insurance Exchange. D) low-income individuals are eligible for tax credits to offset the costs of buying health insurance.
In arriving at the quantity of output and price of its product, a company
a. chooses either output or price, and consumer demand determines the other. b. has no control over either quantity or price. c. makes two decisions by setting both optimal output and optimal price. d. generally leaves both quantity and price decisions to consumers.
Government expenditures as a share of the U.S. economy are
a. the largest in the world. b. the smallest in the world. c. smaller than most Western European countries but larger than a number of high-growth Asian economies. d. larger than Canada, France, and the United Kingdom but slightly smaller than Germany and Italy.