A planned economy is one in which ________.
A) the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group
B) individuals produce enough for personal survival with few resources or goods left over to trade or barter
C) individual income ultimately controls purchasing decisions
D) government distributes some goods and services through selected social programs, and individual income determines purchasing decisions for other goods and services
E) the production and pricing of goods and services is determined through the operation of a market
A) the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group
Explanation: A) A planned economy is one in which the government controls the distribution of goods and resources. Responses B) refers to a traditional economy; C) to a market economy; and D) to a mixed economy
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A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
Refer to Table 9-1. Select the statement that accurately interprets the data in the table
A) Sandy has a comparative advantage in dog grooming. B) Sandy has a comparative advantage in dog bathing. C) Linda has a comparative advantage in dog grooming and dog bathing. D) Linda has a comparative advantage in dog grooming.
Employers and workers in the protected industry know that the consequences of protection are principally:
a. lower prices for their output, lower profits for owners, and lower wages for workers. b. higher prices for their output, lower profits for owners, and lower wages for workers. c. higher prices for their output, lower profits for owners, and higher wages for workers. d. lower prices for their output, higher profits for owners, and higher wages for workers. e. higher prices for their output, higher profits for owners, and higher wages for workers.
A current account deficit
a. is an outflow of financial capital. b. means the country is lending to the rest of the world. c. is an inflow of financial capital. d. means the rest of the world is lending the country.