Households interact with business firms by:
a. buying resource services from business firms.
b. paying wages for the use of labor.
c. selling goods and services to firms.
d. receiving payments from firms for use of resource services.
e. paying rent to firms for the use of land.
d
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In 2008, the Treasury and Federal Reserve took action to save large financial firms such as Bear Stearns and AIG from failing. Which of the following is one reason why these measures were taken?
A) The Fed and the Treasury wanted to allow Freddie Mac and Fannie Mae more time to buy the firms before they went bankrupt. B) The Emergency Economic Stabilization Act required the Fed and the Treasury to provide financial assistance to firms that participated in regular open market actions with the Fed. C) The bankruptcy of a large financial firm would force the firm to sell its holdings of securities, which could cause other firms that hold these securities to also fail. D) The failure of these firms would have forced the Fed to increase interest rates, which could have led to a severe recession.
The most appropriate type of labor market to analyze
a. is the world market b. is the national market c. is a regional market d. is a local market e. depends upon the purpose of the analysis
Which of the following was NOT a factor in Japan's post-World War II economic success?
a. a high rate of investment b. a well-educated workforce c. a high rate of natural resource discovery d. a high rate of technological adoption
The effect of a compensated price change is known as:
A. the price effect of a price change. B. the income effect of a price change. C. the substitution effect of a price change. D. the replacement effect of a price change.