The two sectors of the economy in the simple circular flow model are
A) the employed and the unemployed. B) households and businesses.
C) foreign markets and domestic markets. D) the private sector and the public sector.
B
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How will an increase in physical capital affect labor productivity, labor demand, and potential GDP?
What will be an ideal response?
If additional units of output could be produced at constant opportunity cost, the production possibilities curve would be: a. bowed inward toward the origin
b. bowed outward away from the origin. c. positively sloped. d. a straight line with a negative slope.
Each point on the supply curve shows the: a. amount that people want to buy at that price
b. quantity supplied at that price. c. productive capacity of an individual producer. d. the amount producers want to sell to buyers of different income levels.
Assuming that workers are fully aware of their working conditions, which of the following will not happen when the government mandates pollution control to protect workers' health?
A. Wages will fall at all but the cleanest firms. B. Firms with low profits before the mandate may shut down or exit the industry. C. The air in workplaces will become cleaner. D. Employment will likely decrease. E. Worker utility will increase.