In the circular flow model, households:
a. Buy products and sell resources
b. Sell products and buy resources
c. Buy products and resources
d. Sell products and resources
a. Buy products and sell resources
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In some developing countries and in some former Communist countries, people exchange their domestic currencies for foreign currencies such as the dollar in black markets. Why would this practice go on?
What will be an ideal response?
Using the information in the table shown, the average revenue for 5 units is:
This table represents the revenues faced by a monopolist.
A. $600
B. $300
C. $3,000
D. $120
If the price of peanut butter decreases substantially (ceteris paribus), the equilibrium quantity of jelly, a complement, is likely to:
a. increase, and the equilibrium price of jelly is likely to decrease. b. increase, and the equilibrium price of jelly is likely to increase. c. decrease, and the equilibrium price of jelly is likely to decrease. d. decrease, and the equilibrium price is of jelly likely to increase.
The opportunity cost to you of an action is
A. how much you must pay for the opportunity to take the action. B. the value to you of the next best action you could have taken. C. the cost to society of giving you the opportunity to take the action. D. the dollar cost to you of the action.