The lower portion of the circular flow model contains factor markets in which households provide:
A. goods and services.
B. savings, spending, and investment.
C. natural resources, labor, and capital.
D. output of all final goods and services produced.
Answer: C
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Economics is similar to other social science disciplines in that it examines individual and social behavior
Indicate whether the statement is true or false
A government can maximize efficiency in monopoly markets by setting prices equal to the monopolist's average cost of production albeit at the cost of reduced long term innovation.
a. true b. false
Explain dumping
What will be an ideal response?
One reason customers do not care about the quality of their bank's assets is:
A. most people cannot distinguish an asset from a liability. B. with deposit insurance, there isn't any real reason to care; their deposits are protected even if the bank fails. C. the quality of a bank's assets changes almost daily. D. they assume the bank only has high quality assets.