Refer to Figure 2-17. One segment of the circular flow diagram in the Figure shows the flow of funds from market F to economic agents G. The funds represent spending on goods and services. What is market F and who are economic agents G?
A) F = factor markets; G = households B) F = factor markets; G = firms
C) F = product markets; G = firms D) F = product markets; G = households
C
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Refer to Figure 2-12. What is the opportunity cost of producing one gallon of milk in Bora Bora?
A) 1.5 gallons of honey B) 0.8 gallons of honey C) 1.125 gallons of honey D) 2/3 of a gallon of honey
The cost of hiring one more worker, ceteris paribus, is known as
A) marginal revenue product. B) marginal physical product. C) marginal factor cost. D) marginal wage.
A country should export the goods in which it has an absolute advantage
a. True b. False Indicate whether the statement is true or false
If at an output of 10 units a monopolist is earning a positive profit, marginal revenue is $6, and marginal cost is $4, then the monopolist:
a. is in equilibrium. b. should increase output. c. should reduce output. d. should lower the price at the current output level. e. should raise the price at the current output level.