What is a household? How do households interact with firms in a market?
What will be an ideal response?
A household consists of all persons occupying a home. Households supply factors of production used by firms to produce goods and services. Households also demand goods and services produced by firms.
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In the above figure, the price elasticity of supply at any given quantity is
A) highest along S1, next highest along S2, and lowest along S3. B) highest along S3, next highest along S2, and lowest along S1. C) equal to zero on each of the three supply curves. D) equal to one on each of the three supply curves.
Laborers of which sector work in the tertiary or service sector?
(a) Teachers, doctors, lawyers, nanotechnologists, musicians and athletes (b) Farmers, fisher people and foresters (c) Manufacturers and processors of raw materials (d) All of the above
Suppose this customer is known to throw a fit and scare away other customers if charged high prices. If the shopkeeper moves first, he would ask for
a. A high price b. A low price c. A pony d. All of the above
If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist
a. True b. False Indicate whether the statement is true or false