Basic Types of Economic Systems
? Traditional
? We do things the way we have always done them
? Command Economy
? A central group makes all decisions for what to produce, how to produce it, and who gets it
? Market Economy
? What, how and who are answered by prices determined by supply and demand
? The Mixed Economy
? Most economies display some characteristics of all of the above three types, though they tend to lean in one direction more than others
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The rightward shift of the RS curve will lead to a ________ in the real interest rate, ________ in investment, and ________ in aggregate demand
A) fall; an increase; a decrease B) rise; an increase; an increase C) rise; a decrease; a decrease D) fall; an increase; an increase E) rise; an increase; a decrease
Several features distinguish hedge funds from traditional mutual funds, including
A) mutual funds have a minimum investment requirement of $1,000 or more; hedge funds have no minimum investment requirement. B) hedge funds typically charge investors large fees relative to mutual funds. C) hedge fund investors need not commit their money for more than a few weeks at a time, explaining why they pay higher fees. D) hedge funds are significantly less risky relative to mutual funds.
Most markets in the United States:
A. have some degree of competitiveness, but are not perfectly competitive. B. have very few competitive features and so are regulated by the government. C. are monopolies. D. are perfectly competitive.
Consumer spending represents about what fraction of total spending in the economy?
a. one-fifth b. two-thirds c. one-third d. two-fifths e. three-fourths