Suppose that an individual sees a tremendous opportunity to produce and sell a new product but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the:
A. coordination problem under communist central planning.
B. self-sufficiency dilemma under communism.
C. asymmetric information problem under communism.
D. incentive problem under communist central planning.
Answer: D
Economics
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If the MPC is 0.9 and the tax rate is 15%, a $100 increase in autonomous investment will increase equilibrium income by
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