Explain how market economies are generally better able to achieve technological progress than are centrally planned economies
What will be an ideal response?
In a centrally planned economy, decisions regarding the allocation of resources are made by government employees paid a salary, not by independent entrepreneurs whose own finances are at stake. Independent entrepreneurs make choices for the use of resources based on the expected profitability of various projects. This drive for profit provides an incentive for technological change that centrally planned economies are unable to duplicate. The result is that technological progress is more likely in market economies than in centrally planned economies.
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A good that has external costs associated with its production will be
A) produced at the optimal level. B) underproduced. C) overproduced. D) not produced.
Game theory is necessary to understand which kinds of markets? (i) perfectly competitive (ii) monopolistically competitive (iii) oligopoly (iv) duopoly (v) monopoly
a. (i) and (ii) only b. (iii), (iv), and (v) only c. (iii) and (iv) only d. (i), (ii), (iii), (iv), and (v)
Adding up the market value of all final and intermediate goods and services in an economy in a given year would result in ________.
A. the calculation of NDP for that year B. an amount less than GDP for that year C. an amount greater than GDP for that year D. the calculation of GDP for that year
What is a price floor and why must it be above the equilibrium price to be effective?
What will be an ideal response?