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.
b
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Alt-A mortgages are
A) mortgages which are bundled together by financial institutions and sold to investors. B) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. C) mortgages issued to borrowers with flawed credit histories. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
Assume the price of good X increases. As a result, your real income decreases and you decrease the quantity of good X purchased each month. This is an example of the:
a. income effect. b. consumer price effect. c. revenue effect. d. substitution effect. e. all of these.
Existing computer software
a. is a public good b. is excludable but nonrivalrous c. is rivalrous by not excludable d. should be provided free of charge e. has been produced efficiently
Which of the following industry types features a downward-sloping long-run supply curve?
a. An oligopoly industry b. A constant-cost industry c. A decreasing-cost industry d. A monopolistically competitive industry