Which of the following is not likely to be true in a command economy?
a) Businesses may pursue social objectives.
b) The profits of the business belong to the government.
c) Resources are allocated by government directives.
d) Market forces determine what is produced and who receives the products.
Answer: d) Market forces determine what is produced and who receives the products.
You might also like to view...
Refer to the table above. If investment expenditure falls by $10,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall to $467,000 B) gross domestic product will fall by $10,000 C) gross domestic product will increase by $10,000 D) gross domestic product will increase to $500,000
Most goods and service that we enjoy are bought and sold in the market. However, leisure is something that we value but we do not buy it explicitly
What is the price of leisure? Explain what would happen to the amount of leisure that we would enjoy if the wage rate went up. Make sure to use the substitution and income effect to explain your answer and postulate whether leisure is a normal or inferior good. Why is the ultimate net effect not determinable by appealing to logic alone?
Students in a class are assigned to groups to work on a project. A grade will be given for each project, and everyone in the group will receive that grade. For the members of a particular group, the grade is a
a. beneficial externality. b. public good. c. detrimental externality. d. moral hazard.
Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount.
a. True
b. False
Indicate whether the statement is true or false