An economy in which government bureaucracy decides how much of a good to produce, how to produce the good, and who gets the good is known as a:
A. mixed economy.
B. centrally planned economy.
C. laissez-faire economy.
D. market economy.
Answer: B
You might also like to view...
Abstraction can be thought of as
A. avoiding reality in order to build theory. B. omitting unimportant details in order to understand complex phenomena. C. relying on absurdity to explain simplicity. D. making complex assumptions when simple facts are sufficient. E. stylizing reality rather than analyzing cause and effect.
Which of the following is the best example of the "command" process?
A) United Airlines buys Northwest Airlines. B) Striking auto workers force General Motors to shut down its factories. C) Banks raise their fees on late payments by credit card holders. D) The FCC requires local telephone companies to provide access to their local networks before being able to offer long distance service.
If a firm in a perfectly competitive market faces a market price of $7, and it decides to increase its production from 4,000 to 12,000 units, the firm's marginal revenue will:
A. diminish once diminishing marginal product sets in. B. rise once diminishing marginal product sets in. C. stay the same. D. increase from $28,000 to $84,000.
Confidence in Keynesian economics: a. diminished in the 1960s as the unemployment rate fell
b. flourished in the 1960s despite two major recessions. c. diminished in the 1960s as unemployment increased. d. diminished in the 1970s as inflation occurred simultaneously with two recessions. e. flourished through the 1980s despite Reagan's supply-side policies.