In a command economy, the three economic questions are answered by which of the following?
a. The production and consumption choices made by sellers and buyers in decentralized markets.
b. A cartel of major transnational corporations, government agencies, and consumer advocates.
c. A trilateral commission of major corporations, elected officials, and economists.
d. A central authority such as a peoples' committee or a dictator.
Question 2
According to the Keynesian model, an economy will have persistent, high unemployment if:
a. the government runs a budget deficit.
b. markets operate freely.
c. its total spending is too low.
d. firms make too many investments.
