In market systems, the main way that valuable resources are transferred from households to firms is:
A) through direct barter exchange of labor for goods and services.
B) through government sponsored distribution such as in providing public K-12 schooling.
C) through markets based on money payments.
D) a circular flow where the firms provide resources to households and the households reciprocate by providing finished goods and services to firms.
Answer: C) through markets based on money payments.
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Suppose that the labor movement has a revival in the US and the majority of workers join labor unions. As a result you would expect
A) the unemployment rate to rise. B) the unemployment rate to fall. C) the aggregate demand curve to shift rightward.
If consumption was 70 percent of GDP and investment and government expenditure were both 18 percent each, then we see that
A) exports must be less than imports. B) exports must be more than imports. C) the error is due to rounding. D) we must subtract depreciation from investment so that the components of GDP do not exceed 100 percent. E) GDP can be over 100 percent because it is "gross" rather than "net."
A concentration ratio indicates the sales of the largest firms in an industry as a percentage of the ______ for that industry.
a. total costs b. marginal revenue c. total sales d. equilibrium quantity
Expansionary monetary policy _____ interest rates and _____ aggregate demand.
a) decreases; increases b) decreases; decreases c) increases; increases d) increases; decreases