The circular flow model assumes:
A. businesses and households own the factors of production.
B. businesses own the factors of production.
C. government owns the factors of production.
D. households own the factors of production.
Answer: D
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Inflation makes money an imperfect store of value
Indicate whether the statement is true or false
Efficiency wages are above-market wages that are paid to workers to keep them productive.
Answer the following statement true (T) or false (F)
A firm's short-run supply curve is the firm's marginal cost above:
A. the shut-down point. B. the zero-profit point. C. zero D. the point of diminishing returns.
In the short run, nonprice rationing will happen whenever there is excess demand in a market.
Answer the following statement true (T) or false (F)