The circular flow model shows that consumer goods and services produced by business firms are sold in the
A) goods market.
B) factor market.
C) labor market.
D) financial market.
A
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In a marketplace, prices:
A) act as a measure of value, and do not affect the allocation of resources. B) act as incentives that allow for the efficient allocation of resources. C) are determined by politicians and regulators. D) are determined through auctions.
Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A) 200 tons of agricultural products per year B) 400 tons of agricultural products per year C) 500 tons of agricultural products per year D) 600 tons of agricultural products per year
An investor who owns preferred stock has
A) regular voting rights. B) preferential treatment in the payment of dividends. C) the same rights as a bond holder. D) unlimited liability for the debts of the firm.
The various quantities of all final commodities demanded at various price levels, ceteris paribus, is the
A. aggregate demand curve. B. production possibilities curve. C. LRAS. D. aggregate supply curve.