In what kind of an economy does the government make all the decisions?
What will be an ideal response?
Answer: centrally planned
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If a bank borrows funds for three years, the borrowing will be classified as:
A) demand deposits. B) short-term borrowing. C) stockholders' equity. D) long-term debt.
A rise in stock prices ________ the net worth of firms and so leads to ________ investment spending because of the reduction in moral hazard
A) raises; higher B) raises; lower C) reduces; higher D) reduces; lower
If the general education level within a country rises significantly over time, it is likely that:
a. the country will move to a different point along its current production possibilities curve. b. the country's production possibilities curve will not change in any way. c. the country's production possibilities curve will shift in. d. the country's production possibilities curve will shift out. e. the country's production possibilities curve will become convex to the origin.
Economists are very good at explaining how individual markets work. Economists are less successful at explaining
a. market pricing. b. recessions and inflation. c. central planning. d. business firm profits.