An economy with a government planning commission that provides explicit instructions for resource allocation is an example of
a. a command economy
b. a communal economy
c. a traditional economy
d. a market economy
e. market socialism
A
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Several adjustments must be made to net domestic product at factor cost in order to calculate GDP. One of these adjustments is adding depreciation. What is depreciation and why must it be added?
What will be an ideal response?
Little Percy lives in two periods. His earnings in the present are 150; in the future he will earn 10% more than today. The interest rate is 5 percent. If his consumption today is 160, what is the most he can consume in the future?
What will be an ideal response?
The product life cycle model says that comparative advantage in manufactured goods may move from one country to another as a product becomes more standardized
Indicate whether the statement is true or false
A decrease in the relative price of economics textbooks will raise the aggregate quantity of an economy's goods and services demanded
a. True b. False Indicate whether the statement is true or false