Which of the following is a problem inherent in centrally planned economies?
A) There are no problems and everyone, including consumers, is satisfied.
B) There is too much production of low-cost, high-quality goods and services.
C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants.
D) Unemployment is too high.
Answer: C
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Once a nation has been producing a good or service for some time,
a. its supply curve for that product is vertical b. its supply curve for that product is horizontal at the world price c. it often develops a comparative advantage in producing that good or service d. its moves along its production possibilities frontier and produces more of it e. its production possibilities frontier shifts outward
Identify the correct statement about a corrective tax. a. Equilibrium occurs at a lower market price after the tax is imposed
b. The social cost curve lies below the private cost curve in the absence of the tax. c. A market becomes allocatively efficient after the tax is imposed. d. The socially optimal level of output is more than the market equilibrium output in the absence of the tax.