Communist countries worked under the premise that
a. people, when left on their own without government intervention, will find the best use of available resources
b. central planners were in the best position to determine the allocation of scarce resources in the economy.
c. households and firms, guided by an "invisible hand," could achieve the most efficient allocation of scarce resources.
d. allowing the market forces of supply and demand to operate with no government intervention would achieve the most efficient allocation of scarce resources.
b
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A current account surplus indicates that America is ________ its claims on foreign wealth, while a deficit indicates that this country is ________ its claims on foreign wealth
A) reducing; reducing B) reducing; increasing C) increasing; reducing D) increasing; increasing
The markup pricing technique involves determining the selling price of a good by adding a profit markup to minimum average cost. This would result in maximum profits only if
a. average cost were constant. b. the markup were zero. c. the markup varied with the elasticity of demand. d. demand were inelastic.