1. A positive statement is one which is:
derived by induction.
derived by deduction.
subjective and is based on a value judgment.
objective and is based on facts
2. The invisible hand refers to the:
fact that the U.S. tax system redistributes income from rich to poor.
notion that, under competition, decisions motivated by self-interest promote the social interest.
tendency of monopolistic sellers to raise prices above competitive levels.
fact that government controls the functioning of the market system
3. Innovation lagged in the centrally planned economies because:
there was too much domestic business competition.
there was too much competition from foreign firms.
enterprises resisted innovation out of fear that their production targets would be raised.
exports had to equal imports for the plan to work.