In Cuba, all the economic decisions are taken by the government. This implies that Cuba has a _____
a. command economy
b. market-oriented economy
c. barter economy
d. mixed economy
a
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Suppose that the government passes a law requiring households to increase savings 10% above previous levels. According to Solow's growth theory, in the long run
A) output per capita grows more rapidly. B) output per capita grows at the constant steady state rate, n. C) output per capita stays constant. D) None of the above.
If an economist says "the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus," this means that
A) individuals don't like high-priced oranges. B) as the price of oranges rises, individuals' preferences change and they no longer like oranges as much as they once did. C) as the price of oranges rises, individuals' preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges. D) the higher the price of oranges, the fewer oranges individuals will buy, assuming that people have economic motives.
Depicts a demand curve with a price elasticity that is
a. perfectly elastic, implying that consumers will purchase as much as can be supplied at the market price.
b. relatively inelastic, implying that a percent increase in price results in a smaller percent reduction in sales.
c. unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
d. perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.
The farther an indifference curve is from the origin, the more total utility it yields.
Answer the following statement true (T) or false (F)