Supply and Demand and Centrally Planned Economy Essay

Completion Complete each statement. | | 1. | The hope of reward that encourages a person to behave in a certain way is a(n) _______. incentive | | 2. | A bridge is an example of something that is usually provided as a _________. public good | | 3. | To show how demand for a good will change at specific price points, economists use a ____. Demand curve | | 4. | People will buy more of a good when its price falls and less when its price rises, according to the _______. Law of demand | | 5. | The rate the Federal Reserve charges banks for loaning them money is the _____________________. Discount rate | Fill in the Blank. Identify the word(s) that best complete(s) the statement or answers the†¦show more content†¦| The federal income tax is a _______progressive______ tax because the higher the income a person has, the higher the percentage that person pays in tax. | | | | | | | | | | 14. | Funding for most _____public_______ universities comes from state sales taxes and state income taxes. | | | | | | | | | | 15. | Congress changed the structure of the _____Federal Reserve_______ in 1935 to allow district banks to work together | | | | | | | | | Short AnswerAnswer the following questions using complete sentences. | | 16. | How do resources and technology affect a country’s production possibilities?Resources and technology can affect a country’s production possibilities by opening up new jobs and advancing In technology that can increase the economic growth. Also, without the proper resources of technology, production can turn out being slower and revenue wi ll be smaller. | | 17. | Consider the centrally planned economy of the Soviet Union or China. Choose one and explain how its experience shows the problems with a centrally planned economy.The centrally planned economy of the Soviet Union was planned about five years in advance. They thought they knew exactly everything of how much they will have but they didn’t know of everything they would need. Because of this they were always either lacking something or they had excessive amounts of something. Also, there was constant complex demandsShow MoreRelatedBenefits Of A Country Moving From A Economic Economy1017 Words   |  5 Pagesextent to which a country moving from a centrally planned economy to a more market driven economy is in the interest of both consumers and producers†. 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The policy under economy was made according to directives from the Communist Party, which was known to control all aspects of economicRead MoreWhy Was Central Planning Abandoned in Eastern Europe and the Ussr?2657 Words   |  11 Pagesthe market and of Soviet democracy.† Thesis statement The words of Leon Trotsky, said decades before the eventual demise of central planning, highlight the underlying flaw of the planned economic system; lack of information. The central planner’s realized that the information and signaling required for any modern economy could be found more effectively in a market based system and consequentially central planning was abandoned. The systemic failure of central planning due to poor information was