In a planned economy,
a. prices are used to coordinate economic activity.
b. central planners set production targets and tell producers how to produce.
c. high prices discourage use of the most scarce resources.
d. central planners allow the price to determine distribution of a product.
b
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The Keynesian approach to fiscal policy calls for: a. budget deficits during periods of inflationary pressure. b. budget surpluses during periods of high unemployment. c. a balanced budget despite the state of the economy
d. tax cuts during recession. e. spending increases during inflation.
One source of economic growth is:
a. producing inside the production possibilities curve. b. producing outside the production possibilities curve. c. increasing capital. d. discouraging profit-seeking entrepreneurs.