When central planners in a command economy end up having a huge surplus of shoes and widespread shortages of bread in their economy, they have failed to attain:
A. Productive efficiency
B. Allocative efficiency
C. Minimum opportunity costs
D. Maximum process and revenues
Answer: B
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The downward slope of the demand for money curve reflects the fact that
A) people hold more of their wealth in the form of money as the price level rises. B) people hold more of their wealth in the form of money as the price level falls. C) people hold more of their wealth in the form of money as the interest rate rises. D) people hold more of their wealth in the form of money as the interest rate falls.
Which of the following is included in GDP?
a. life expectancy b. literacy c. health d. infant mortality
Which of the following is not a characteristic of the Earned Income Tax Credit (EITC)?
a. It does not discourage recipients from working. b. It is less distortionary than other anti-poverty programs. c. It helps the disabled who cannot work. d. It applies only to the working poor.
In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?
a. Governments regulate to resolve problems of discrimination. b. Profit-maximizing firms that do not discriminate tend to replace firms that discriminate. c. Wages paid to groups that are victimized by discrimination are eventually bid up to above-equilibrium levels. d. Discrimination is usually the outcome of rational decision-making processes, and competitive markets produce rational outcomes.