Which of the following is NOT true about a command economy? a. Economic goals ar

Question

Which of the following is NOT true about a command economy?

a. Economic goals are set by the ruler or government

b. The government decides what is produced

c. The government determines prices

d. Economic decisions are determined by the market

What is the term when a country can produce a good at a lower opportunity cost than another country?

a. Better technology

b. Cheaper labor

c. Absolute Advantage

d. Comparative Advantage

When moving from one bundle inside the production possibilities frontier to another bundle on the production possibilities frontier, the economy:

a. Gets more of both goods without sacrificing any of either good

b. Gets more of one good at the cost of giving up some of the other good

c. Moves from an efficient bundle to an inefficient bundle

d. Face a trade-off in production

The US government gives a subsidy to soda producers if they produce bottled water instead of soda. What happens to the market for soda?

Select one:

a. supply shifts to the left and price increases

b. supply shifts to the right and price decreases

c. demand shifts to the left and price decreases

d. demand shifts to the right and price increases

Which of the following does NOT affect the supply of labor?

Select one:

a. Number of workers

b. Technological improvements in production

c. Changes in unemployment benefits

d. Level of education required for the job

Explanation / Answer

a) "D"

In a command economy evey thing is determined by the governemtn and the governing authority. ANs not by the market.The answer is "D".

b) "D"

When a country can produce a good at a lower opportunity cost than othet country it is termed as having an comparative advantage.

c) "B"

Get more of one good at the cost of other.

d) "A"

Such a move will decrease the supply of soda and increase that of water. It will shift the supply curve ot the left increasing the price and decreasing the quantity.

e) "B"

Any technological improvement will not affect the supply of labor at all.

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