With regard to transition economies what is meant by shock therapy?
What will be an ideal response?
Shock therapy is an approach to transition from socialism to market capitalism that advocates rapid deregulation of prices, liberalization of trade, and privatization.
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Which of the following is not a barrier to entry that is created by government?
A) Economies of scale. B) Licenses. C) Regulatory restrictions. D) Patents.
Which of the following is an example of a barter transaction?
A) An individual pays her electric bill with a check. B) An individual pays her electric bill with currency. C) An individual provides three light bulbs to her neighbor in exchange for two gallons of milk. D) An individual deposits three twenty-dollar bills in her checking account.
For almost all goods, the:
A. lower the price goes, the higher the quantity supplied. B. higher the price goes, the more luxurious it is. C. lower the price goes, the more luxurious it is. D. higher the price goes, the higher the quantity supplied.
The best measure of how much output the average person would get if all output were divided evenly among the population would be
A. GDP. B. The capital stock of the economy. C. The economic growth of the economy. D. Per capita GDP.