Assuming one can derive a correct input-output table, are there still any reasons to prefer the market to central planning?
The market reflects consumer choice. The input-output table considers only production efficiency. Also, the market can react more quickly to changes in cost and especially to changes in demand. An input-output table is expensive to construct and use, whereas the market doesn't requires a special computer program. Finally, the government would have to decide what will be produced in a centrally planned economy, versus consumers deciding in a market.
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In Cambodia during the early 2000s, the illiteracy rate for girls between the ages of 15 and 24 was __________ and the illiteracy rate for males in this age group was ______________.
a. 86%; 88% b. 80%; 83% c. 67%; 70% d. 72%; 69%
In order to discover anything about causal relationships in economics we must first have
A) all the relevant data. B) quantified data or statistics. C) scientific evidence. D) some kind of theory of how things fit together. E) the courage and civility to eliminate all biases and preconceptions from our thinking.
Which of the following could decrease the supply of dollars in the foreign exchange market?
a. a higher inflation rate in foreign countries b. lower interest rates in foreign countries c. lower prices in the United States d. an appreciation of other currencies e. a depreciation of the dollar
Which of the following is a form of monitory policy?
A. Increasing the Money Supply faster than usual during recession. B. Cutting taxes during a recession C. Increase government's spending during recession D. All E. None