Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of labor services from market K to economic agents J. What is market K and who are economic agents J?
A) K = product markets; J = firms B) K = factor markets; J = firms
C) K = product markets; J = households D) K = factor markets; J = households
B
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Index mutual funds purchase shares of stock in those companies which are included in the market based indexes
a. True b. False Indicate whether the statement is true or false
A reflationary policy could include:
a) decreasing injections b) increasing taxation rates c) increasing interest rates d) increasing government spending
From the economic point of view, what does a professor who posts her syllabus on the Internet and a restaurant that posts its menu outside have in common?
A) They are attempting to exploit others. B) They are reducing competition. C) They are expanding the range of opportunities available to others. D) They are solely in it for the money.
Which of the following statements is false?
A. If a negative externality exists, the market output is greater than the socially optimal output. B. If a positive externality exists, the market output is less than the socially optimal output. C. If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits. D. When a positive externality exists, marginal social benefits are greater than marginal private benefits. E. none of the above