What is a command economy?
What will be an ideal response?
A command economy is one in which a central government either directly, or indirectly, sets output targets, incomes, and prices. It may even involve direct government ownership of the means of production and central planning of the economy.
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Place point A on the graph to indicate where the United States economy operated in 1938.
Consider a U-shaped long-run average cost curve that has a minimum efficient scale at 6,000 units of output. In this case, this industry would be
A) an oligopoly if the market quantity demanded is 18,000 units. B) perfectly competitive if the market quantity demanded is 20,000 units. C) an oligopoly if the four-firm concentration ratio is more than 10 percent. D) monopolistically competitive if the market quantity demanded is 12,000 units.
Many economies have seemed to get by even in the face of inflation rates in the thousands. How would you nevertheless explain the fundamental harm done by high inflation?
What will be an ideal response?
Which of the following is a bank liability?
A) reserves B) consumer loans C) nontransaction deposits D) securities