Answer the following statements true (T) or false (F)
1. The problems of central planning become less complex as an economy grows in size over time.
2. Profits are the primary "success indicator" for firms in a centrally planned economy.
3. Quantitative measures of managerial success, such as production targets or quotas, are highly foolproof and are thus ideal to use in raising economic efficiency.
4. In the circular flow model, households act as buyers in the resource markets.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
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Refer to the table. The interest-rate effect of changes in the price level is shown by columns:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. (1) and (4) of the table.
B. (5) and (6) of the table.
C. (1) and (3) of the table.
D. (2) and (4) of the table.
Which of the following pairs is the most likely to exhibit a direct relationship?
A. The price of gasoline and the amount of gasoline that people purchase. B. Cholesterol levels and the likelihood of developing heart disease. C. Outdoor temperature and heating oil sales. D. Annual income and weekly pawn shop visits.