Which of the following is NOT a characteristic of a centrally planned economy?
A. Consumers vote with their dollars thus guiding resources to produce what the society wants.
B. Government sets the prices.
C. The government decides how much of each good should be produced.
D. All of these statements are characteristics of centrally planned economy.
A. Consumers vote with their dollars thus guiding resources to produce what the
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Which of the following World War I (1914–18) institutions reappeared in various forms during the Great Depression and/or World War II (1941–45)?
(a) The U.S. Grain Corporation (b) The War Industries Board (c) The United States Housing Corporation (d) All of the above
A firm purchases $600,000 worth of raw materials and pays wages and salaries of $100,000 and dividends of $200,000 . If the firm sells its output for $1 million, the firm's value added to GDP is
a. $300,000. b. $400,000. c. $900,000. d. $1,000,000.
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
If the government provides a subsidy of $500 per ton, the equilibrium price of sugar will be ________ per ton, and the equilibrium quantity will be ________ tons per day.
A. $1,500; 12 B. $1,000; 12 C. $1,000; 8 D. $1,500; 8
The Undercover Economist chapter on "How China Became Rich" explains how
A) Centrally planned agricultural policies of Mao that dictated the crops to be grown and the methods to be used led to the starvation of millions of Chinese B) China began to develop because of its emphasis on its agricultural economy C) Although Communist, China privatized almost all production equipment and allowed managers full production discretion by the late 1970s D) Changes from central planning that incentivized managers in China to pay attention to markets helped transform the country's economy