A significant feature of developing countries is that they use their labor less efficiently than ...

A significant feature of developing countries is that they use their labor less efficiently than developed countries.
 a. True
  b. False

QUESTION 2

Output per capita is the most commonly used measure of the prosperity of a nation.
 a. True
  b. False

QUESTION 3

Which of the following occurs when there was a shortage of supply in a centrally planned economy?
 a. Central planners reduced the amount supplied to each sector
  b. Shoppers waited in long lines at retail stores
  c. Store shelves were empty
  d. Shop operators expected tips or bribes for supplying scarce consumer goods
  e. All of the answers are correct

QUESTION 4

In centrally planned economies, most prices are not
 a. established by central planners
  b. inflexible
  c. set below the market-clearing level
  d. based on consumer demand
  e. the cause of shortages of supply

QUESTION 5

Soft budget constraints will lead to
 a. inefficiency
  b. quick responses to changes in supply and demand
  c. good investment decisions
  d. high product quality
  e. managers eager to satisfy consumer demand rather than production quotas

QUESTION 6

A soft budget constraint applies when enterprises that earn profits distribute those profits to their private owners.
 a. True
  b. False