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In an economy in which decisions are guided by prices and individual self-interest, there is:

a. the potential to reach efficiency in production 

b. a strong need for government intervention in the economy.

c. less efficiency than otherwise be in a centrally planned economy. 

d. more need for a strong legal system to control individual greed than would be needed in a centrally planned economy  

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manhokwe tawanda
manhokwe tawandaLv10
29 Dec 2020
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Related questions

 

1. A positive statement is one which is:

a. derived by induction.

b. derived by deduction.

c. subjective and is based on a value judgment.

d. objective and is based on facts

 

2. The invisible hand refers to the:

a. fact that the U.S. tax system redistributes income from rich to poor.

b. notion that, under competition, decisions motivated by self-interest promote the social interest.

c. tendency of monopolistic sellers to raise prices above competitive levels.

d. fact that government controls the functioning of the market system

 

3. Innovation lagged in the centrally planned economies because:

a. there was too much domestic business competition.

b. there was too much competition from foreign firms.

c. enterprises resisted innovation out of fear that their production targets would be raised.

d. exports had to equal imports for the plan to work.

1.What do so many politicians, and journalist tells us what fair means?

2. After fifty years of poverty fair programs in the US, what are the results?

3.What was an early definition of social justice?

4.What is the current definition of social justice?

5.What are the many ways the US Federal Government taxes us?

6.What is our government's only source of revenues, no matter how our politicians word it?

7.What proportion of income taxes in the US is paid by the top 50%, 10%, and 1% of income earners?

8.Why are payroll taxes regressive?

9. It is true that nearly half the household in the US pays no income tax at all?

10. Do the poor actually lose various welfare benefits if they are trying to climb out of welfare, and their income increases?

11.Who actually pays corporate income taxes?

12.What is the definition of Economics?

13.Is there any form of government or economic system that can prevent a country from facing scarce resources?

14. How are resource allocation decisions made in a centrally planned economy and a free market system?

15.Is political self-interest somehow better than economic self-interest?

16.Is it possible for a small group of people in Washington D.C. to know the massive amounts of information required to get the right amount of milk on the local grocery stores' shelves?

17.What does voluntary exchange driven by self-interest require that each party to the exchange do?

18.What is the purpose of prices in a free market system?

19.What is crony capitalism, and why is it detrimental?

20.Why is issue emotionalism a shaky foundation upon which to make policy decisions?

21.We do not need to care what the stated intentions of politicians are regarding their proposed regulations. Instead, what should our concerns focus upon?

 

1. The multiplier helps explain

   

A. why a decrease in taxes causes real Gross Domestic Product (GDP) to fall by more than the amount of the decrease in taxes.
   

B. why a fall in investment cause real Gross Domestic Product (GDP) to rise by more than the amount of the decrease in investment.
   

C. why a rise in government expenditures causes real Gross Domestic Product (GDP) to rise by more than the amount of the increase in government spending.
   

D. why an increase in disposable income causes real Gross Domestic Product (GDP) to rise by less than the amount of the increase in disposable income.

 

2. If the marginal propensity to save (MPS) increases, the multiplier

   

A. decreases.
   

B. can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).
   

C. stays the same.
   

D. increases.

 

QUESTION 60

The investment function will shift when there is a change in

   

A. the opportunity cost of retained earnings.
   

B. firms' profit expectations.
   

C. the cost of borrowing.
   

D. the interest rate.

1.43 points

QUESTION 61

In the Keynesian model, whenever planned saving exceeds planned investment,

   

A. there will be unplanned inventory accumulation.
   

B. real GDP will not be influenced.
   

C. the interest rate will remain unchanged.
   

D. there will be unplanned inventory depletion.

 

1.43 points

QUESTION 62

In the Keynesian model, whenever planned saving is less than planned investment,

   

A. there will be unplanned inventory depletion.
   

B. the interest rate will remain unchanged.
   

C. there will be unplanned inventory accumulation.
   

D. real GDP will not be influenced.

 

1.43 points

QUESTION 63

Government purchases

   

A. are determined by the political process.
   

B. are determined by the public.
   

C. are influenced by interest rates.
   

D. are determined by suppliers.

 

1.43 points

QUESTION 64

If, at some level of output, total planned real expenditures are less than real Gross Domestic Product (GDP),

   

A. real GDP will either fall or remain unchanged, depending on the MPC.
   

B. real GDP will rise.
   

C. real GDP remains unchanged.
   

D. unplanned inventories will increase and real GDP will fall.

 

1.43 points

QUESTION 65

When the economy is operating at the equilibrium level of GDP, we know that

   

A. total planned real expenditures equal real GDP.
   

B. real net exports equal inventory changes.
   

C. planned real investment spending equals real net exports of zero.
   

D. total planned real consumption expenditures equal real GDP.

 

1.43 points

QUESTION 66

One divided by the marginal propensity to save (MPS) is the formula for

   

A. the inverse of the multiplier.
   

B. the multiplier.
   

C. one minus the multiplier.
   

D. autonomous consumption.

 

QUESTION 67

Thinking like an economist would, which is true of investment?

   

A. Investment represents spending on capital goods.
   

B. Investment is a stock concept.
   

C. Investment is putting money into stocks and bonds.
   

D. It is the portion of disposable income that is not used for consumption or saving.

 

QUESTION 68

Other things being equal, if input prices rise in a country, then there would be

   

A. cost-push inflation.
   

B. demand-pull inflation.
   

C. cost-pull deflation.
   

D. more production and a lower price level.

 

QUESTION 69

In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that

   

A. existing capital equipment can be used more intensively.
   

B. wage rates rise almost simultaneously with the price level.
   

C. the unemployment rate usually rises dramatically along with the price level.
   

D. workers can be switched from counted to uncounted production.

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