In the circular flow model, firms use the money they earn from selling their goods and services to pay for the
a. goods and services they buy on the product market
b. resources they buy on the product market
c. goods and services they buy on the resource market
d. resources they buy on the resource market
e. differences between the revenue they earn selling the goods and services and the costs involved in producing them
D
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Refer to the scenario above. Based on the given information, we can conclude that the market for used cars has ________
A) information asymmetry B) a perfectly competitive structure C) positive externalities D) negative externalities
If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A) profits are being maximized. B) profits will always be negative. C) the incremental cost of producing the last unit exceeds the incremental revenue. D) the incremental cost of producing the last unit is less than the incremental revenue.
For an inferior good, the income elasticity of demand is negative
a. True b. False Indicate whether the statement is true or false
The typical 50-year-old male earns approximately ____ as a male in his early 20s
a. twice as much b. the same c. half as much d. 1/3 as much