A command system is a method of organizing production that
A) uses a market-like mechanism inside the firm.
B) relies on competitive markets.
C) uses a managerial hierarchy.
D) uses incentives most extensively.
C
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Lessons about the nature of economic processes will likely emerge from the analysis of transitional economies
a. True b. False
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive). b. Real GDP falls, and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.