Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
a. Prices were used to allocate resources.
b. Prices played the same role as in a market economy.
c. Prices were used to ration final goods and services but not to allocate resources.
d. None of these statements is descriptive.
c
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If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
a. more than $10. b. less than $10. c. $10. d. $5300.
"The government should provide health care for all citizens." This statement is an illustration of:
a. positive economic analysis. b. correlation analysis. c. fallacy of association analysis. d. normative economic analysis.
Which of the following is not an example of a resource?
a. an office building b. a product's price c. the land plowed by a farmer in order to grow corn d. the chief executive officer of a large corporation
The total cost to a firm of producing zero units of output is
a. zero in both the short run and the long run b. its fixed cost in the short run, zero in the long run c. its fixed cost in the long run, zero in the short run d. its fixed cost in both the short run and the long run e. its variable cost in both the short run and the long run