In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers?
a. to produce good quality products so that society would benefit from the resources used
b. to conserve on costs, so as to maintain efficiency in the economy
c. to produce enough to meet the output target, without regard for quality or cost
d. to produce those products that society desires most
c
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The simple multiplier formula assumes the following, except that
A. the economy has excess capacity and room to expand output. B. firms will raise prices as buyers buy more of their output. C. business firms will increase production if demand for their output increases. D. people will spend more if they earn additional income.
To an economist, "value" is the same as
A) marginal cost. B) consumer surplus. C) the minimum price that people are willing to pay for another unit of the good. D) marginal benefit. E) total surplus.
How is the equilibrium exchange rate determined?
What will be an ideal response?
A monopoly will always produce less than a purely competitive industry, ceteris paribus
a. true b. false