Question

In both a command economy and in a monopoly, prices are not set according to the rules of supply and demand.  

True

False

Technology is generally considered inflationary because while no wealth is created or destroyed, the cost of a good or service increases while the quality of the good or service remains the same.

True

False

With an economy based on the Market (a Market economy), prices are set based on the effects of supply and demand.

True

False

Corporations are in business to make money in the short term for their stockholders.

True

False

Answer 1

1. False

Explanation: Command economy, as the name suggests is a system where government suggests what good should be produced, how much of it and also rules upon the price at which it is to be sold.Investment and incomes are also determined.It is a key feature to any of the communist society such as North Korea, Cuba and former Soviet Union.

2.True

Explanation: The inflation is increasing due to technology and globalization.There is whole lot of journal publish on this topic.please consider "Lv L, Liu Z, Xu Y (2019) Technological progress, globalization and low-inflation".

3.True

Explanation: In economic model, it tends to bring the supply and demand to a point where it is termed as economic equilibrium.

4.False

Explanation: In fact, A company's financial strength demonstration is in paying dividends to their stockholders by sending a powerful message of company's future prospects and performance.

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