Which of the following is a problem inherent in centrally planned economies?
A) Production managers are more concerned with satisfying consumer wants than with satisfying government's orders.
B) There is too little production of low-cost, high-quality goods and services.
C) Exports tend to exceed imports.
D) Households and firms make poor decisions in choosing how resources are allocated.
B
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In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital) and b represents the efficiency of human capital accumulation
The growth rate of human capital equals A) u(1 - b) - 1. B) 1 + b(1 - u). C) (1 + b)(1 - u). D) b(1 - u) - 1.
Total Revenue Product with six units of labor would be
A. $200.
B. $340.
C. $1,000.
D. $1,200.
Natural gas found in Oklahoma is an example of
A) physical capital. B) land. C) human capital. D) labor.
The life insurance industry is an example of an industry with imperfect information.
Answer the following statement true (T) or false (F)