What role do business firms play in output markets and in factor markets?
What will be an ideal response?
In output markets, firms supply goods and services. In factor markets, firms demand factors of production.
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An example of a good that is both rival and excludable is
A) the defense services provided by a new stealth bomber. B) a pair of pants. C) a beautiful sunset. D) an uncrowded theme park such as Walt Disney World.
A regressive tax structure is one: a. in which the tax rate increases as the base increases
b. in which the tax rate remains the same as the base increases. c. that tends to discourage additional work as income rises. d. that is famous and in use in the U.S. e. in which the tax rate increases as the base increases.
Foreign outsourcing of service is commonly seen in economies that possess the skills and equipment required to produce those services for themselves
Indicate whether the statement is true or false
Refer to the above figure. A movement from B to D would be a result of
A. an increase in labor productivity. B. an increase in government expenditures. C. an increase in the marginal income tax rate. D. an increase in the quantity of money in circulation.