What is a centrally planned economy?
What will be an ideal response?
A centrally planned economy is an economy in which the government decides how economic resources will be allocated.
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A command-and-control policy:
A. usually does not result in the use of the most efficient pollution abatement technology. B. does not affect the production costs of firms. C. usually finds the most efficient pollution abatement technology. D. increases the incentive for firms to develop efficient abatement technologies.
A natural monopoly is a firm that experiences economies of scale over the range of market demand
a. True b. False
If a firm's long-run average cost curve is rising, it is experiencing:
a. a constant return to scale. b. economies of scale. c. diseconomies of scale. d. none of these.
. Central banks, as they conduct monetary policy, inevitably affect only ___________, with no lasting impact on ___________ in the long run.
A. prices; employment B. employment; prices C. output; prices D. demand; employment