In a command system:
A. Self-interest motivates and commands each business firm's decisions and actions
B. The head of each family decides what to do with the family's resources
C. The government makes production and allocation decisions
D. Market traders command what outputs are produced and how they are allocated
Answer: C
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The goal of a commercial bank is to
A) establish good regulations for commercial activities. B) accept only deposits made in money. C) minimize its taxes paid to state governments. D) maximize its stockholders' wealth. E) make only safe, no-risk loans.
In the short-run, any fall in EP /P, regardless of its causes, will cause
A) an upward shift in the aggregate demand function and an expansion of output. B) an upward shift in the aggregate demand function and a reduction in output. C) a downward shift in the aggregate demand function and an expansion of output. D) an downward shift in the aggregate demand function and a reduction in output. E) an upward shift in the aggregate demand function but leaves output intact.
All actions and purchases, even those of wealthy people, involve a sacrifice
a. True b. False Indicate whether the statement is true or false
When the dollar appreciates, the prices of imported inputs
a. fall and aggregate supply shifts outward. b. fall and aggregate supply shifts inward. c. rise and aggregate supply shifts outward. d. rise and aggregate supply shifts inward.