In a planned economy,
A. prices are used to coordinate economic activity.
B. central planners set production targets and tell producers how to produce.
C. high prices discourage use of the most scarce resources.
D. central planners allow the price to determine distribution of a product.
Answer: B
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Refer to Table 10-2. Using the table above, what is the approximate average annual growth rate from 2013 to 2016?
A) -1% B) 1% C) 2% D) 4%
If a toy store overestimates the demand for a toy in 2004 and, as a result, has an unexpectedly large number of toys in stock at the end of the year, the value of the inventory of these toys will be considered as: a. investment in 2004
b. investment in 2005. c. consumption in 2004. d. consumption in 2005. e. a part of GDP when the toys are sold.
When someone buys a bond, they give up the bond's price in exchange for:
A. right of ownership. B. future income. C. current income. D. stock.
To say that a price ceiling is binding is to say that the price ceiling a. results in a surplus
b. is set above the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.