In a command (planned) economy ?

Related Mcqs:

1. In a planned or command economy, all the economics decisions are taken by the ?

   A. Consumers
   B. voters
   C. government
   D. Workers

2. What is more likely to be found in a free market economy than in a planned economy ?

   A. an even distribution of income
   B. an incentive to innovate
   C. a wide range of public goods
   D. full employment of labor

3. In Planned economy’ Production and distribution of Wealth is under control of_____________?

   A. Private sector
   B. Government
   C. Bank
   D. None of the above

4. The economics system planned economy is ?

   A. In which economists control production
   B. In which production and distribution of wealth is under government’s control
   C. In which technocrats control production
   D. In which government controls distribution

5. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?

   A. F
   B. a
   C. H
   D. I

6. Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?

   A. b
   B. I
   C. a
   D. H

7. Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?

   A. d
   B. G
   C. E
   D. b

8. Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?

   A. People will reduce their price expectations and the short run aggregate supply will shift right
   B. People will raise their price expectations and aggregate demand will shift left
   C. People will raise their price expectations and the short run aggregate supply will shift left
   D. People will reduce their price expectations and aggregate demand will shift right

9. An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

   A. free-trade
   B. autarkic
   C. open
   D. mixed

10. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

    A. R&D generating welfare improved technology
    B. development of more productive machinery
    C. new work rules promoting workers efficiency
    D. lower wages extracted from workers