In the circular flow model, the source of the factors of production used to create goods and services is the
a. product market
b. resource market
c. firms
d. households
e. exchange market
D
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Under what conditions will the political process provide an inefficient amount of a public good?
What will be an ideal response?
Tom and Eric went to trade school at the same time. Each graduated with an associate's degree. They have received similar performance evaluations. Eric's employer is not a good business manager, and the sales manager lost a major deal. Because of the decrease in profits, the employees did not receive raises last year. Tom's employer is a savvy business manager and the sales manager is experienced
and works hard. If Tom has higher earnings than Eric, the difference is most likely a function of a. chance. b. differences in human capital. c. differences in signaling. d. discrimination.
If the structural unemployment rate is 3 percent, the frictional unemployment rate is 3 percent, and the current unemployment rate is 5 percent, then the economy is in a recessionary gap
Indicate whether the statement is true or false
A government-set price floor on a product:
A. Does not interfere with the rationing function of price in a market system B. Will drive resources away from the production of the product C. Will attract more resources towards the production of the product D. Is intended to benefit the buyers of the product