In the simple circular flow
A. consumers trade resources for goods and services in the factor market.
B. producers trade goods and services for monetary payments in the product market.
C. consumers trade goods and services for monetary payments in the factor market.
D. businesses trade goods and services for resources in the product market.
Answer: B
You might also like to view...
In the above figure, what is autonomous consumption?
A) $3.0 trillion B) $1.0 trillion C) $0.0 trillion D) $2.0 trillion
If the cross price elasticity between Goods A and B equals -1.3, then a reduction in the price of Good B will:
a. increase the demand for Good A and increase Good A's price as a result. b. increase the demand for Good A and decrease Good A's price as a result. c. decrease the demand for Good A and increase Good A's price as a result. d. decrease the demand for Good A and decrease Good A's price as a result.
The production possibilities frontier is used to illustrate some basic economic ideas, including
a. scarcity. b. opportunity cost. c. economic growth. d. All of the above are correct.
Refer to the graph shown. From 1929 to 1933 the money supply fell in the United States by 40 percent. The effect of this on the AD curve is best shown by a movement from:
A. A to B. B. A to C. C. A to D. D. B to A.