The circular flow model shows that the goods and services produced by business firms are sold through:
A. money markets.
B. resource markets.
C. product markets.
D. stock markets.
Answer: C
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The tendency of opportunity cost to increase as production increases
A. is an example of theory that has not been proven by facts. B. is a general principle, but not a universal fact. C. is a universal fact, with no known exceptions. D. rarely holds in reality, but is a useful theory. E. cannot be tested with standard economic tools.
A supply curve slopes upward because
a. as more is produced, total cost of production falls. b. an increase in input prices increases supply. c. the quantity supplied of most goods and services increases over time. d. an increase in price gives producers an incentive to supply a larger quantity.
Which of the following offers theories to explain why the government, like the private sector, may also "fail"?
A. social economics B. public choice theory C. rational expectations theory D. Keynesian economics
The theory of monopolistic competition was developed in two separate models by
A) Adam Smith and David Ricardo. B) John Kenneth Galbraith and John Maynard Keynes. C) Edward Chamberlin and Joan Robinson. D) Roger Leroy Miller and Paul Samuelson.