The essential difference between capitalism and socialism is that ?

A. Capitalism exploits the worker and socialism exploits the property owner
B. Capitalism relies on the market to make economic decisions and socialism uses central planning
C. Capitalism grows through rent seeking and socialism grows through government direction
D. Capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

The misery index Which some commentators suggest measures the health of the economy, is ?

A. The sum of the growth rate of output and the inflation rate
B. The sum of the natural rate of unemployment and the actual rate of unemployment
C. The sum of the inflation rate and the central bank’s refinancing rate
D. The sum of the unemployment rate and the inflation rate

The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

A. Decreases unemployment
B. Decrease growth
C. Increases unemployment
D. Decreases inflation

The Vicious circle theory indicates that ?

A. A country is poor because it has lower productivity but high savings
B. As countries grow richer they save less
C. Poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
D. Market size is large in ldcs

For Rosentein Rodan a major indivisibility is in ?

A. Supply
B. Infrastructure
C. Agriculture
D. Services

OECD stands for ?

A. Organization for economic cooperation and development and development
B. Oil exporting countries development
C. Organization for environmental cooperative department
D. Open economies caucus on development

Baran’s Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ?

A. Based on an alliance between landowners and peasants
B. Based on an alliance between peasants and the foreign bourgeosiie
C. Transferred from one elite to another when revolution occurs
D. Derived from domestic opponents of nationalism

The Harrod Domar growth model suggests that growth is ?

A. Directly related to savings and inversely related to the capital/output ratio
B. Directly related to the capital/output ratio and inversely related to savings
C. Indirectly related to savings and the capital/output ratio
D. Directly related to savings and the capital/output ratio

A theory ?

I- Is a systematic explanation of relationships between economic variables
Ii- explains causal relationships among variables
Iii- provides a basis for policy
Iv- provides an explanation of all factors influencing economic growth.

Adam Smith advocated ?

I- Laissez faire
Ii- the invisible hand
Iii- free trade policy
Iv- competitive markets