One thing the simple circular flow model shows is ______.
a. that firms pay households for capital inputs
b. where political power is concentrated
c. that firms are the buyers in product markets
d. the average capital holdings of households
a. that firms pay households for capital inputs
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A monopolist faces an average total cost of $10 when it produces 400 units of its product. If it sells the 400 units at $6 per unit, ________
A) the monopolist makes a profit of $600 B) the monopolist makes a loss of $600 C) the monopolist makes a profit of $1,600 D) the monopolist makes a loss of $1,600
The slope of an isoquant measures
A) the ratio of the marginal utility of the two inputs. B) the price ratio of the two inputs. C) the rate at which inputs can be substituted for each other keeping total output constant. D) the average product of labor.
If the American Medical Association lobbied successfully to eliminate licensing laws for physicians,
a. physicians' salaries would increase b. the supply curve of physicians would shift to the left c. physicians' salaries would decrease d. the supply curve of physicians would become more inelastic e. the supply curve of physicians would become more elastic
The Fed's use of the ________ as an operating target in the 1970s resulted in ________ monetary policy
A) federal funds rate; countercyclical B) federal funds rate; procyclical C) M1 money supply; countercyclical D) M1 money supply; procyclical