How are the fundamental economic decisions determined in Cuba

Question: #6443

4) How are the fundamental economic decisions determined in Cuba?

a. Primarily, the government decides because Cuba is a centrally planned economy.

b. These decisions are made by the country’s elders who have had much experi- ence in answering these questions.

c. Individuals, firms, and the government interact in a market to make these economic decisions.

d. The United Nations decides because Cuba is a developing economy.

5) Which of the following correctly describes the relationship between economic efficiency and economic equity?

a. They are both automatically achieved in a free market economy. b. There is no conflict between the two goals.

c. There is often a trade-off between the two. d. They always call for opposite outcomes.

Final Examination

6) Which of the following statements best characterizes the disagreements be- tween Paul Samuelson and Jagdish Bhagwati in their debate about outsourc- ing?

a. Their disagreements are grounded in normative economic analysis. They dis- agree over how to interpret the relevant economic statistics.

b. Their disagreements are grounded in positive economic analysis. They dis- agree about the relevant economic statistics used in the model.

c. Their disagreements are grounded in normative economic analysis. They dis- agree over the types of jobs lost to outsourcing.

d. Their disagreements are grounded in positive economic analysis. They dis- agree about the model and the assumptions used in the model.

Solution: #6458

How are the fundamental economic decisions determined in Cuba

4) How are the fundamental economic decisions determined in Cuba? a. Primarily, the government decides because Cuba is a centrally planned economy. b. These decisions are made by the country’s elders who have had much experi- ence in answering these questions. c. Individuals, firms, and the government interact in a market to make these economic decisions. d. The U...