As depicted in the circular flow diagram, firms
A) supply the resources that households demand in factor markets.
B) demand the goods and services that households supply in product markets.
C) demand the resources that households supply in product markets.
D) supply the goods and services that households demand in product markets.
D
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The gap between real GDP per person in the United States and South America has been narrowing since 1980
Indicate whether the statement is true or false
Which of the following is a problem associated with gross domestic product (GDP) as a measure of social welfare? a. It includes many nonmarket activities
b. It takes into account the value of only those goods which are widely used. c. It takes into account the cost of environmental damage caused by pollution. d. It includes intermediate goods as a separate entry. e. It excludes the value of leisure time.
Demand is inelastic if the price elasticity of demand is greater than 1
a. True b. False Indicate whether the statement is true or false
The market produces too few public goods because:
A.) The link between payment and consumption is broken. B.) They must be paid for by wealthy individuals. C.) Only the government can produce public goods. D.) The market distributes goods to those with the most money.