In the circular flow model of the market system, households:
A. Buy products and resources
B. Sell products and resources
C. Buy products and sell resources
D. Sell products and buy resources
Answer: C
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Cost-plus pricing is a reasonable way to determine the optimal price when
A) fixed costs are high. B) marginal cost and average cost are roughly equal. C) fixed costs vary. D) fixed cost and variable costs are roughly equal.
Outputs include goods but not services
a. True b. False Indicate whether the statement is true or false
Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following events could convert the price ceiling from a nonbinding to a binding price ceiling? a. a government study that shows that consuming chocolate increases the incidence of cancer. b. a large increase in the size of the cocoa bean crop; cocoa beans are used to produce
chocolate. c. South American cocoa bean producers refuse to ship to chocolate producers in the US. d. a sharp drop in consumer income; chocolate is a normal good.
ukraine is a major producer of wheat, and exports much of its wheat to europe. if ukraine no longer is able to export to europe, consider the european market for wheat: indicate whether there is a shift in supply or demand in the european market
a) supply b) demand