The circular flow model with government included would show that government:
A. Controls economic resources and sells them in the resource market
B. Produces goods and services and sells them in the product market to generate net taxes
C. Provides goods and services to businesses and households and pays for them with net taxes
D. Obtains revenues in the product market and uses it to cover costs in the resource market
C. Provides goods and services to businesses and households and pays for them with net taxes
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Which of the following is a necessary feature of the notion of the market as a competitive process and the model of perfect competition?
A) Freedom of entry B) Price taking behavior C) Perfect and complete information D) All firms produce identical products. E) All of the above.
Most economists believe that a small amount of the gap between the wages of white males and the wages of other groups is due to discrimination. Which of the following factors is not another factor that explains part of this gap?
A) geographic location B) differences in experience C) differing preferences for jobs D) differences in education
The hot spot problem is:
a. the U.S. obtains the majority of its oil supplies from politically unfriendly countries. b. some air pollutants such as sulfur dioxide have a greater effect nearby than further away. c. some air pollutants such as carbon dioxide have an equal effect nearby and further away. d. nuclear plants heat up nearby water, causing a decline in the native fish population.
An early frost in the vineyards of Napa Valley would cause a(n)
a. increase in the demand for wine, increasing price. b. increase in the supply of wine, decreasing price. c. decrease in the demand for wine, decreasing price. d. decrease in the supply of wine, increasing price.