Which of the Following Statements Is TRUE? I

question 110

Multiple Choice

Which of the following statements is TRUE? I. China and the Soviet Union tried to centrally plan their entire economies. II. To many people's surprise, including economists, central planning proved successful in Eastern Europe. III. President Nixon ordered gas stations closed on Sunday, an example of central planning.

• A) II and III only
• B) I, II, and III
• C) II only
• D) I and III only

Recognize the role of genetics and heritability in determining traits and behaviors.

Identify cognitive biases and heuristics in decision making and problem solving.

Understand the principles of cognitive psychology including perception, memory, and thought processes.

Familiarize with the concepts of functional fixedness and its impact on problem solving.

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Definitions:

Short-run Expansion Path

The route a firm takes to increase output by optimizing the combination of inputs used, given at least one fixed input, over a short period.

Variable Input

A production input whose quantity can be changed in the short term to influence output.

Fixed

Related to something that is unchanging, constant, or securely attached and not subject to variation.

SAC Curves

Short-run average cost curves represent how a firm's average costs vary with output in the short term.