15. In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. TRUE In a market economy, if demand for a product exceeds supply, prices will rise, signaling producers to produce more. If supply exceeds demand, prices will fall, signaling producers to produce less. In this system consumers are sovereign. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Recognize how the economic systems of countries differ. Topic: Economic Systems 16. The number of command economies has fallen dramatically since the demise of communism in the late 1980s. TRUE Historically, command economies were found in communist countries where collectivist goals were given priority over individual goals. Since the demise of communism in the late 1980s, the number of command economies has fallen dramatically. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Recognize how the economic systems of countries differ. Topic: Economic Systems 17. The objective of the government in a command economy is to encourage free and fair competition between private producers. FALSE The objective of a command economy is for government to allocate resources for "the good of society." In addition, in a pure command economy, all businesses are state owned.
15. In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. TRUE In a market economy, if demand for a product exceeds supply, prices will rise, signaling producers to produce more. If supply exceeds demand, prices will fall, signaling producers to produce less. In this system consumers are sovereign. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Recognize how the economic systems of countries differ. Topic: Economic Systems 16. The number of command economies has fallen dramatically since the demise of communism in the late 1980s. TRUE Historically, command economies were found in communist countries where collectivist goals were given priority over individual goals. Since the demise of communism in the late 1980s, the number of command economies has fallen dramatically. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Recognize how the economic systems of countries differ. Topic: Economic Systems 17. The objective of the government in a command economy is to encourage free and fair competition between private producers. FALSE The objective of a command economy is for government to allocate resources for "the good of society." In addition, in a pure command economy, all businesses are state owned.
test-bank-international-business-9th-edition-hill.docx