Innovation lagged in the centrally planned economies because:
A. there was too much domestic business competition.
B. there was too much competition from foreign firms.
C. enterprises resisted innovation in fear that their production targets would be raised.
D. exports had to equal imports for the plan to work.
Answer: C. enterprises resisted innovation in fear that their production targets would be raised.
You might also like to view...
Refer to the figure above. If the pre-tax equilibrium price of Good X was $3 and the price that consumers need to pay after the imposition of a per-unit tax of $3 is $5, the tax incidence on consumers is approximately ________
A) 50% B) 2% C) 3% D) 67%
Nancy's utility of wealth curve is given in the above figure. She is faced with a risky proposition which yields an income of $50 one-third of the time, $100 one-third of the time, and $150 one-third of the time. Her expected utility is
A) 100. B) 140. C) 150. D) 420.
According to the text, critics point out that the costs incurred by firms due to regulations
A) increase production costs. B) lower production costs to the shutdown point. C) reduce taxes too far. D) none of the above.
In response to a severe recession, the Fed more than doubled the monetary base and pushed short-term interest rates to near zero during 2009-2010 . What happened in 2011?
a. The inflation rate soared to double-digit levels. b. Aggregate demand increased and the economy recovered rapidly. c. The large budget deficit of the earlier years was transformed into a budget surplus. d. The high rate of unemployment continued.