The incentive problem under communist central planning refers to the idea that:
A. planners had to direct required inputs to each enterprise.
B. workers, managers, and entrepreneurs could not personally gain by responding to
shortages or surpluses or by introducing new and improved products.
C. the immediate effect of more investment was less consumption.
D. exports had to be equal to imports for a central plan to work.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
There are a number of "trade-offs" in economics. The production possibilities curve depicts the trade-off between producing one set of goods and another, such as consumption and capital goods. The trade-off between inflation and unemployment is yet another and is depicted by the
a. Laffer curve b. aggregate supply curve c. Phillips curve d. aggregate demand curve e. Keynesian curve
The purpose of the IMF is to:
A. provide developing countries with short-term loans and technical assistance. B. determine monetary and fiscal policy in developing countries. C. determine exchange rates for developing countries. D. buy and sell the currencies of developing countries in order to stabilize their value.
Why is money considered to be debt?
What will be an ideal response?