In the circular flow diagram, businesses
A) Buy resources and sell products
B) Sell resources and buy products
C) Sell resources and sell products
D) Buy resources and buy products
Answer: A) Buy resources and sell products
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The analysis of how asymmetric information problems affect economic behavior is called ________ theory
A) uneven B) parallel C) principal D) agency
Bank lending and deposits tend to change as interest rates change. Can the Fed counteract this tendency?
a. Yes, through its ability to affect the money supply. b. Yes, through its ability to change tax levels. c. No, the Fed is forbidden by the Constitution from intervening in the economy. d. No, the Fed almost always follows a passive monetary policy.
Government growth has been caused by
A. citizens who want larger government. B. lots of public lands available in the West. C. increases in privatization. D. inflation.
Is wage discrimination more likely in competitive or monopolistic markets?
What will be an ideal response?