What makes production planning a daunting task for central planners?
What will be an ideal response?
Because the output required from any one industry depends on outputs from many other industries, planners can be sure that the production of the various outputs will be sufficient to meet both consumer and industrial demands only by taking explicit account of this interdependence among industries. If they change the output target for one industry, they must also adjust every other industry’s output target. But those changes in turn are likely to require readjustment of the first target change that started it all, leading to still more target change requirements, and so on, indefinitely.
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Since 1999, the U.S. ________ account has recorded relatively minor transactions, such as migrants' transfers, and sales and purchases of nonproduced, nonfinancial assets
A) capital B) financial C) current D) balance of trade account
Governments grant patents to
A) encourage low prices. B) compensate firms for research and development costs. C) encourage firms to reveal secret production techniques. D) encourage competition.
Assume the market shares of the six largest firms in an industry are 15 percent each. The six-firm concentration ratio would indicate that the industry is highly concentrated, while the Herfindahl- Hirschman Index would not
Indicate whether the statement is true or false
Goods that consumers regard as luxuries generally have
a. an income elasticity equal to 1. b. an income elasticity less than 1. c. an income elasticity greater than 1. d. a negative income elasticity.