Identify the four factors of production, and tell what type of income is earned by each factor
What will be an ideal response?
The factors of production are land, which represents all the gifts of nature; labor, the work effort people put into producing goods and service; capital, goods that have been produced and are used as a productive resource to help produce other goods and services; and entrepreneurship, the human resource that organizes all the other factors of production. Land earns rent, labor earns wages, capital earns interest, and entrepreneurship earns profit or losses.
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How did Adam Smith explain the cause of the wealth of nations?
A) The growth of the middle class B) The growth in the average level of prices C) The growth of the division of labor D) People's unending urge to consume
A discouraged worker might ________
A) be counted as unemployed B) have tried to find a job during the month prior to the household survey, but without success C) have been prevented from working during the week prior to the household survey, due to illness or other temporary circumstances D) be waiting to return to a job from which he or she has been laid off E) none of the above
Phyllis spends her income on beer and pretzels, and a six pack of beer costs the same as a bag of pretzels. If she is in consumer equilibrium, we know: a. she buys the same quantities of six packs of beer and bags of pretzels
b. she gets the same marginal utility from the last six pack of beer as from the last bag of pretzels. c. she gets the same total utility from beer as she does from pretzels. d. that all of the above are true.
If some firms are making a profit in monopolistic competition, in the long run
A. the industry supply curve will increase and market price will fall. B. the industry supply curve will increase and market price will rise. C. the industry supply curve will decrease and market price will fall. D. the industry supply curve will decrease and market price will rise.