Podcast
Questions and Answers
What is another term for a state-controlled economy?
What is another term for a state-controlled economy?
- Planned economy (correct)
- Mixed economy
- Capitalist economy
- Free market economy
In a state-controlled economy, what replaces profit as the primary incentive of production?
In a state-controlled economy, what replaces profit as the primary incentive of production?
- Common good (correct)
- Market forces
- Government regulations
- Individual choice
What challenge can arise in state-controlled economies due to excessive bureaucracy?
What challenge can arise in state-controlled economies due to excessive bureaucracy?
- Lack of government control
- High levels of unemployment
- Removal of individual choice
- Increase in inequality (correct)
Why are planned economies sometimes referred to as 'planned'?
Why are planned economies sometimes referred to as 'planned'?
What has led to the reform of many planned economies towards mixed economies?
What has led to the reform of many planned economies towards mixed economies?
What determines how resources are allocated in a market economy?
What determines how resources are allocated in a market economy?
In a market economy, what is the market-clearing price?
In a market economy, what is the market-clearing price?
What happens in a market economy if there is oversupply?
What happens in a market economy if there is oversupply?
In a market economy, what serves as the 'price' in the labor market?
In a market economy, what serves as the 'price' in the labor market?
How does competition impact the value of scarce resources in a market economy?
How does competition impact the value of scarce resources in a market economy?
What term is used to describe a country preventing other countries from trading freely with it to protect its domestic market?
What term is used to describe a country preventing other countries from trading freely with it to protect its domestic market?
Which organization is responsible for promoting the growth of free trade between economies and arbitrating trade disputes?
Which organization is responsible for promoting the growth of free trade between economies and arbitrating trade disputes?
What is the primary purpose of the World Trade Organization (WTO)?
What is the primary purpose of the World Trade Organization (WTO)?
What do regional and bilateral trade agreements aim to achieve beyond what is stipulated in global trade agreements under the WTO?
What do regional and bilateral trade agreements aim to achieve beyond what is stipulated in global trade agreements under the WTO?
Why do some governments introduce tariffs on imports, as mentioned in the text?
Why do some governments introduce tariffs on imports, as mentioned in the text?
What is the primary responsibility of central banks with regard to the national debt?
What is the primary responsibility of central banks with regard to the national debt?
Which function of central banks aims to prevent systemic collapse during financial crises?
Which function of central banks aims to prevent systemic collapse during financial crises?
What role do central banks play in influencing a nation's currency value?
What role do central banks play in influencing a nation's currency value?
In what capacity do central banks act when they accept deposits from commercial banks?
In what capacity do central banks act when they accept deposits from commercial banks?
Which task falls under the responsibility of setting monetary policy for a nation's financial system?
Which task falls under the responsibility of setting monetary policy for a nation's financial system?
What is the primary tool used by central banks to control inflation?
What is the primary tool used by central banks to control inflation?
How long can it take for changes in a central bank's interest rate to fully impact inflation?
How long can it take for changes in a central bank's interest rate to fully impact inflation?
What characterizes deflation in an economy?
What characterizes deflation in an economy?
What is the primary action taken by a central bank to combat rising inflation?
What is the primary action taken by a central bank to combat rising inflation?
In what situation does a central bank reduce its official rate according to the text?
In what situation does a central bank reduce its official rate according to the text?
What is the primary difference between measuring economic activity through individuals' total expenditure and by the value of total output generated by firms?
What is the primary difference between measuring economic activity through individuals' total expenditure and by the value of total output generated by firms?
What aspect ultimately determines the rate of sustainable growth in an economy over the long run?
What aspect ultimately determines the rate of sustainable growth in an economy over the long run?
Which factor plays a crucial role in influencing an economy's trend rate of growth according to the text?
Which factor plays a crucial role in influencing an economy's trend rate of growth according to the text?
What is the primary impact of efficient infrastructure development on economic growth?
What is the primary impact of efficient infrastructure development on economic growth?
How does Gross Domestic Product (GDP) differ from Gross National Product (GNP) in measuring a country's economic output?
How does Gross Domestic Product (GDP) differ from Gross National Product (GNP) in measuring a country's economic output?
What factor is mentioned as a key determinant of long-term productivity growth in a mature economy?
What factor is mentioned as a key determinant of long-term productivity growth in a mature economy?
During a recession, what is a common result in the economy?
During a recession, what is a common result in the economy?
What term is used to describe the phenomenon when actual output exceeds potential output in an economy growing above its trend rate?
What term is used to describe the phenomenon when actual output exceeds potential output in an economy growing above its trend rate?
In a post-industrialized economy, why are productivity gains more challenging to extract compared to economies with a large manufacturing base?
In a post-industrialized economy, why are productivity gains more challenging to extract compared to economies with a large manufacturing base?
What is the consequence of economic growth rates exceeding a country's long-term trend growth rate?
What is the consequence of economic growth rates exceeding a country's long-term trend growth rate?
What must the balance of payments include in order to balance?
What must the balance of payments include in order to balance?
Which type of investment involves trading in stocks and bonds?
Which type of investment involves trading in stocks and bonds?
In the context of the text, what is the role of the balancing item in the balance of payments?
In the context of the text, what is the role of the balancing item in the balance of payments?
If a country has a current account deficit due to net importation, how can it be offset according to the text?
If a country has a current account deficit due to net importation, how can it be offset according to the text?
What category of investment involves transactions in currency and bank deposits?
What category of investment involves transactions in currency and bank deposits?
What is the primary difference between government debt and budget deficit according to the text?
What is the primary difference between government debt and budget deficit according to the text?
How are debt measures usually presented according to the text?
How are debt measures usually presented according to the text?
In what economic scenario would government spending exceed tax revenues according to the text?
In what economic scenario would government spending exceed tax revenues according to the text?
How does a buoyant economy impact government borrowing according to the text?
How does a buoyant economy impact government borrowing according to the text?
What is the conventional way of comparing debt measures over time according to the text?
What is the conventional way of comparing debt measures over time according to the text?
What term do economists use to refer to the extent to which those seeking employment cannot find work?
What term do economists use to refer to the extent to which those seeking employment cannot find work?
How do higher levels of unemployment affect a government's finances according to the text?
How do higher levels of unemployment affect a government's finances according to the text?
What impact does high unemployment levels have on the demand for goods and services in an economy?
What impact does high unemployment levels have on the demand for goods and services in an economy?
Why does care need to be taken when looking at official unemployment figures according to the text?
Why does care need to be taken when looking at official unemployment figures according to the text?
What negative impact does high unemployment levels have on a government's finances?
What negative impact does high unemployment levels have on a government's finances?
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