Which of the following best distinguishes a "command economy" from a "market economy?"
a. A command economy is more efficient than a market economy because decision making is centralized
b. There is scarcity in command economies, but not in market economies.
c. Command economies are less prone to inflation than are market economies.
d. Production and distribution decisions are made by central planners in a command economy, but not in a market economy.
d
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A competitive market is characterized by
a. the absence of entry barriers b. many buyers with a single seller c. imperfect information d. a differentiated product
If a person produces capital goods, she sacrifices current production of consumer goods in order to obtain the capability of producing more goods and services in the future. This is called roundabout production
a. True b. False
When a country has monetary autonomy, it can:
A) conduct monetary policy independently of all other countries. B) conduct monetary policy only in coordination with all other countries. C) conduct monetary policy only in cooperation with its reserve currency country (the country to which it fixes its currency). D) print money without affecting inflation.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. To force this firm to produce the ________ level of output, the government should ________ of $10.00 per car.
A. efficient; impose a tax B. market; issue a subsidy C. market; impose a tax D. efficient; issue a subsidy