Which of the following statements is true?
A. In a command economy, consumers answer the questions of what to produce, how to produce it, and how to distribute it.
B. In command economies consumers still exercise choice.
C. Planned economies have fared very well in recent years, with many of these economies thriving.
D. Command economies operate the most efficiently because the government makes all the production decisions.
Answer: B
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Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles B) wheat C) fast food D) postage stamps
Refer to Figure 10.9. Other things equal, a negative demand shock is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
If the economy was producing at point D and moved to point C
A. the unemployment rate would decrease.
B. the production possibilities frontier would shift outward.
C. the production possibilities frontier would shift inward.
D. None of these choices are true.
If a nation can produce a more computers per year than any other nation, that nation has a(n) ________ advantage in the production of computers.
A. absolute B. relative C. comparative D. natural