How do firms and households interact within the context of the circular flow model?
What will be an ideal response?
Households are the owners of the factors of production. Firms purchase these factors in the factor market. They use these factors to produce goods and services which are sold to households in the goods market. Households are paid for the services of the factors of production and use this income to pay for the goods and services.
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Which of the following definitely results in a product's equilibrium price rising?
A) an increase in both demand and supply B) a decrease in both demand and supply C) an increase in demand combined with a decrease in supply D) a decrease in demand combined with an increase in supply E) an increase in the supply combined with no change in the demand
According to the text, economics offers the business person
A) a substitute for the accounting department. B) a substitute for the marketing department. C) a way to forecast demand. D) an approach to thinking. E) a replacement for the personnel department.
The lowest the poverty rate has been during the last 50 years was in
A. 1960. B. 1967. C. 1973. D. 1979.
Who was responsible for developing the 14 principles of management?
a. max weber b. henri fayol c. douglas mcgregor d. frank gilbreth