A) Capital accumulation is generally insufficient because consumers don't directly cast dollar votes for capital goods.
B) The invisible hand directs the production of consumer goods, but government planning is required to effectively allocate resources to capital goods.
C) Capital good production is the primary driver of the demand for consumer goods.
D) Entrepreneurs and business owners cast dollar votes for capital goods based on the profitability of goods and services they sell to consumers.
F) A) and C)
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A) Output was often low quality because production managers were rewarded only for meeting quantitative production targets.
B) Output was often high quality but insufficient in quantity because production managers were rewarded only for meeting quality standards.
C) Output was generally high quality and sufficient in quantity because of the well-specified economic plans.
D) Output was of variable quality but sufficient in quantity because market signals were only consistent in telling managers how much to produce.
F) A) and C)
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A
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A) A is the resource market and box B is the product market.
B) B is the resource market and box A is the product market.
C) C is the product market and box B is the resource market.
D) D is the product market and box B is the resource market.
F) B) and C)
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A) The economies of both North Korea and South Korea have grown at approximately the same rate since Korea was divided after World War II.
B) Since their division after World War II, South Korea has grown much faster than North Korea, but their GDP per capita remains roughly equal.
C) Since their division after World War II, North Korea's economy has achieved greater economic growth than South Korea.
D) Starting from similar economic positions prior to their division after World War II, South Korea's economy has grown to about 40 times the size of the North Korean economy.
F) B) and C)
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A) New Zealand.
B) Colombia.
C) Argentina.
D) Japan.
F) B) and C)
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C
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A) The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government.
B) The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets.
C) The production and allocation of goods and services is determined primarily through markets.
D) The production and allocation of goods and services is determined primarily through government.
F) B) and C)
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A) Production targets.
B) Wages.
C) Income distribution standards.
D) Profit.
F) A) and B)
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A) Managers had no incentive to address market surpluses or shortages, as long as they met production goals.
B) Workers were not motivated to work hard because of a lack of consumer goods to purchase.
C) Command economies try to minimize the use of capital goods, making production less efficient.
D) The complexity of production processes made it difficult to assure that all necessary inputs were provided at the right time and in the right amount.
F) A) and D)
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A) households, flow (7) is revenue, and flow (8) is goods and services.
B) businesses, flow (7) is revenue, and flow (8) is goods and services.
C) households, flow (7) is goods and services, and flow (8) is revenue.
D) businesses, flow (7) is goods and services, and flow (8) is revenue.
F) A) and C)
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C
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A) the economies of both North Korea and South Korea have grown at approximately the same rate.
B) both North and South Korea have adopted command economies.
C) North Korea's economy has achieved greater economic growth than South Korea.
D) the South Korean economy has grown faster than North Korea's economy.
F) C) and D)
Correct Answer
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Correct Answer
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A) The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government.
B) The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets.
C) The production and allocation of goods and services is determined primarily through markets.
D) The production and allocation of goods and services is determined primarily through government.
F) C) and D)
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Correct Answer
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