Describe the crisis in Russia starting from 1989. Explain why?
What will be an ideal response?
Students should emphasize lack of legal system, tax collection, corruption, organized crime, inflation, seigniorage financing, inability to reduce spending, reduction in oil prices, gold prices, world's recession etc. high and unsustainable interest rates, and continued support from the IMF for fear of collapse of the regime, including a possible nuclear threat if Russia decided to sell off its arsenal.
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The classical economists assumed that
A) wages and prices were inflexible, especially downward. B) government intervention in the economic system was necessary and helpful. C) monopoly was widespread in the economy. D) wages and prices were flexible.
In the above figure, along which range would the demand for this good be most elastic?
A) between point a and point b B) between point c and point d C) between point d and point e D) at point e