Refer to Figure 2-11. In the circular flow diagram, who are economic agents A and who are economic agents B?
A) A = households; B = firms B) A= firms; B = product markets
C) A = firms; B = households D) A = households; B = factor markets
A
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Which of the following takes place in the direct finance market?
A) Savers make funds available to borrowers by making deposits to savings accounts. B) Borrowers take out loans from banks. C) Loans to corporations are made from the sale of corporate bonds. D) Firms borrow funds from their retained earnings.
The economy of the northern colonies, in particular New England, was largely based on
(a) small-scale farming. (b) slave trade. (c) cotton production. (d) all of the above.
A public good is described, in part, as a good
A. that may be depleted if demand is heavy. B. that has a marginal cost at or near zero. C. that is essential to life. D. which has all of these characteristics.
With cost-push inflation in the short run, there will be a(n) ________.
A. leftward shift in the aggregate demand curve B. decrease real GDP C. decrease in unemployment D. increase in real GDP