In a circular flow model consisting of the household sector, the business sector, product markets, and resource markets:
a. Households are buyers of productive resources
b. Businesses are sellers of products
c. Resource markets are sellers of products
d. Households are sellers of products
b. Businesses are sellers of products
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Which of the following commodities can be considered as an inferior good?
a. Dwelling in a small apartment located in a suburb b. Washing clothes in a washer at home c. Eating out at an upscale restaurant d. Spending vacations at exotic locations
The buying and selling of government bonds by the Fed is known as
a. open market operations b. federal bond operations c. treasury bond operations d. open bonds operations e. discount rate operations
Which of the following is not a requirement for the existence of monopolistic competition in a market?
a. numerous small sellers b. full information about the market among buyers and sellers c. product homogeneity d. freedom of entry into the market
Which of the following is the most efficient method to reduce pollution emissions?
a. government pollution charges or taxes b. non-tradable emission standards that cap allowable pollution c. common law enforcement of property rights, when those rights are well-defined and transaction costs are low d. legislated regulations limiting the quantity of emissions allowed by each firm