IBUS TEST 6 - 6. The Mixed Economy as an economic ideal is...

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1. In a State-directed economy the government regulates various factors of production. False 2. In free market economy if consumers signal to producers that they are willing to pay higher prices than currently charged for pastry products, pastry producers will. Generally tend to produce more pastry 3. Mixed economies include elements of both capitalism and socialism. True 4. Which of the following best fits the description of a market economy: (A is INCORECT ANSWER) a. In a market economy production is determined by the interaction of price and quantity produced b. Supply and demand is naturally met in a market economy c. Governments discourage competition among producers d. A Market economy is characterized by State-owned monopolistic firms 5. Which of the following best fits the description of a command economy: A Command economy is characterized by State-owned monopolistic firms
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Unformatted text preview: 6. The Mixed Economy as an economic ideal is supported by the ______________________ as a compromise between classic som and free-market capitalism. Social Democrats 7. In a free market economy, the ___________________ defines what is produced, in what quantity, and at what price. The invisible hand of supply-and-demand market forces 8. The role of government in a free market economy has generally been to encourage competition among producers. True. 9. In a free market economy, if the price of everyday use wrist-watches goes up significantly consumers will. Generally tend to purchase less of them 10. In a Command economy ______ has the final authority to take decisions regarding production, utilization of the finished industrial products and the allocation of the revenues earned from their distribution. Government....
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