North Seattle ECON 202 – In a command economy
Q1. In a command economy, _____.a. owners can sell their resources to the highest bidderb. a dictator makes every economic decisionc. no individual or group coordinates the economyd. public ownership of resources is combined with free markets to direct economic activitye. in theory, individual choices are reflected in collective decisions and decisions are made by central planners.Q2. Patrick decided to go to class today instead of going to the movies. He made this decision because:a. Patrick’s additional benefit of going to class exceeds the additional cost of going to the movies.b. Patrick’s additional benefit of going to class exceeds the additional cost of going to class.c. Patrick’s additional benefit of going to the movies exceeds the additional cost of going to the movies.d. Patrick’s additional benefit of going to the movies exceeds the additional cost of going to class.e. Patrick’s additional benefit of going to class equals the additional cost of going to the movies.Q3. The figure below shows the short-run aggregate supply curve of an economy.If P3 is the price level prevailing in the economy, _____.a. potential output is greater than actual output.b. the actual unemployment rate is above the natural rate.c. there is a recessionary gap.d. the price level will rise.e. there is an expansionary gap.
