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

Economics

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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.

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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.

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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

Economics