EBK PRINCIPLES OF MACROECONOMICS
11th Edition
ISBN: 9780133803648
Author: CASE
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 14P
To determine
Command economy and laissez faire economy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
what is command economy? and give discussion on command economy advantages and disadvantages ?
What are the advantages of a market economy as compared to a command economy
What are some examples of a command economy? Market Economy?
Chapter 2 Solutions
EBK PRINCIPLES OF MACROECONOMICS
Knowledge Booster
Similar questions
- Consider your decision to read this textbook on economics. Identify which of the four core principles of economics (the cost benefit principle, the opportunity cost principle, the marginal principle, or the interdependence principle) is most relevant for the following aspects of that decision. Reading this textbook will help establish a solid foundation for understanding concepts you will learn in more advanced economics courses. Reading this textbook will require time and effort, but doing so will help you improve your grade in this course. The time you will spend reading this textbook could instead be used to study for your chemistry exam. Each extra page that you read and each practice problem that you complete will help you increase your understanding of the material.arrow_forwardWhich of the following is a typical concept discussed in Microeconomics and not Macroeconomics? 1. Profit maximization in a monopolistically competitive industry 2. Causes of our country's unemployment 3. The average increase in prices of all goods and services 4. The total amount of goods and services produced in a nationarrow_forwardColin gives away 2 marbles each time he makes a pokemon card construct a graph that represents constant opportunity costarrow_forward
- Why does the laissez faire approach to economic policy imply only minimal government involvement? When does it make sense for the government to intervene in a perfectly competitive market setting?arrow_forwardAs may have been blatantly obvious to you all along, since Miranda is the only inhabitant of the island, all she's really doing is catching fish for herself and eating them. However, even a single agent economy such as this one has all of the features any economy would, such as supply and demand curves, and equilibrium prices and quantities. Miranda plays many roles in this economy, as all of the profit earned by Miranda the producer is transmitted to Miranda the shareholder, which represents additional income that Miranda the consumer can spend on fish in addition to the labor income earned by Miranda the worker. (a) Suppose Miranda earns both labor income and profit, so that pq = wl + π(p). Rewrite her utility maximization problem and find the new demand for fish qd(p) and leisure r(p). (b) Find the equilibrium price p* and quantity q* of fish. (c) Find the equilibrium hours of labor l* and labor r*.arrow_forwardWhich Characteristics of economy system are the most important to a capitalist economy?arrow_forward
- It is clear that productive inefficiency is a waste since resources are being used in a way that produces fewer goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?arrow_forwardConsider your decision to study this final exam. Which of the four core principles of economics applies to the notion that the benefit of studying one more hour might not be worth the cost of studying one more hour? Select one: a. Interdependence principle b. Marginal principle c. Cost-benefit principle d. Opportunity cost principlearrow_forwardWhat is relationships between general competitive equilibrium, pareto efficiency and equity in an economy ?arrow_forward
- In the capitalist economic system, the individuals through the forces of demand and supply interact to determine the allocation of resources as well as prices without external interference. Why then is the government sometimes justified to intervene in the economy to allocate resources?arrow_forward“How to allocate limited resources in an efficient way (as emphasized in an introductory economics course)?” Explain how the topics covered in this course can help address this issue.arrow_forwardHow is a command economy different from a market economy? Note:[ don't use chatgpt i will upvote correct answer ]arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you