Is a benevolent command economy likely to achieve greater efficiency than a purely competitive market system? Explain
No. The market system, by itself, will tend to result in allocative efficiency, thus solving the economic coordination tasks of the economy automatically. A command system cannot improve upon the market; the best it could achieve is efficiency as great as the market. Because the motivation of self-interest in allocating resources in a command economy is not as keen, the result is likely to be far from efficient.
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In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.
The figure above shows the marginal revenue, marginal cost, and demand curves for an airline offering daily flights between Los Angeles and Toronto
If the airline is regulated using a marginal cost pricing rule ________ flights will be offered each month at a price of ________ per flight. A) 200; $300 B) 200; $100 C) 300; $200 D) 400; $100
When a demand curve is vertical, the elasticity of demand is equal to
A. 0. B. 1. C. ?. D. -1.
Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's marginal revenue at a price of $70?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) $80 B) $40 C) $60 D) $50