What is the difference between product markets and factor markets?
What will be an ideal response?
Product markets are markets for goods and services. Factor markets are markets for the factors of production, which are the inputs used to make goods and services.
You might also like to view...
The aggregate demand curve shifts to the right when the Fed:
A. increases its target inflation rate, reflected by a downward shift in the Fed's policy reaction function. B. decreases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function. C. decreases its target inflation rate, reflected by an upward shift in the Fed's policy reaction function. D. increases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function.
If the Fed maintains an expansionary monetary policy, ________
A) the M2 measure of money decreases B) the real interest rate increases C) banks make less loans D) bank deposits increase
Why must the current account and the financial account sum to zero? (Assume the capital account is zero.)
What will be an ideal response?
The four-firm concentration ratio
A) indicates the total profitability among the top four firms in an industry. B) is an indicator of the degree of monopolistic competition. C) indicates the presence and intensity of an oligopoly market. D) is used by the government as a basis for anti-trust cases.