What could explain why South Korea's gross domestic product (GDP) per capita increased so much faster since the 1970s than North Korea's GDP per capita?
What will be an ideal response?
One of the factors that could explain the divergence between South Korea's and North Korea's per capita GDP is the fact that South Korea is a market economy while North Korea is a command economy. The price mechanism allocates resources in market economies to their most efficient use. It also aligns the incentives of sellers and buyers. Central planners in command economies, however, face coordination and incentive problems. The central planner does not fully understand consumer wants and the production capabilities of every sector of the economy, and it is difficult to provide workers with appropriate incentives.
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A) many; little B) many; much C) few; little D) few; much
All individuals on the same line in an organization chart have similar levels of responsibility and authority in the organization
Indicate whether the statement is true or false
The tendency for marginal utility to decline as consumption increases beyond some point is called:
A. utility maximization. B. the rational spending rule. C. the law of demand. D. the law of diminishing marginal utility.
The low rate of inflation in the 1990s is probably due to
A. the rise of discount stores that minimize distribution costs, thereby holding prices down. B. the fact that businesses have become meaner and leaner. C. the advent of E-commerce that increased competition and drove prices down. D. the flood of imported goods that increased competition with American-made goods. E. All of the choices are correct.