Which of the following exist(s) in a command economy but not in a market economy?
a. Property rights for individuals
b. Land, labor, capital, and entrepreneurship
c. Plenty of incentives to motivates firms to produce what consumers need
d. An absence of long lines of customers at shops
e. A central authority making production and consumption decisions
Answer: e. A central authority making production and consumption decisions
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Autarky refers to
A) a situation in which there is no trade. B) the equilibrium a nation reaches after trade begins. C) a situation in which nations trade goods and services. D) the location on a consumption possibilities curve.
The table above shows sales of the firms in the chocolate industry. The four-firm concentration ratio in the industry is
A) 52 percent. B) 65 percent. C) 72 percent. D) 80 percent.
Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
a. Open market purchases of government securities by the central bank. b. An increase in the discount rate. c. A reduction in the reserve ratio by the central bank. d. A reduction in the preferred asset ratio for currency in circulation (C/D), due to a shift in household preferences. e. All of the above increase the supply.
Which of the following would cause a currency to depreciate in a flexible exchange rate market?
a) Rising domestic interest rates. b) Reduced demand for imported goods. c) Increased investment abroad. d) A surge in foreign demand for a country's goods.