What role do households play in capital markets?

What will be an ideal response?


Households indirectly supply the financial resources necessary for firms to purchase capital.

Economics

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If the national incomes of our trading partners increase, then our aggregate demand ________.

A. decreases because consumption decreases B. increases because net exports increase C. decreases because net exports decrease D. increases because consumption increases

Economics

According to the law of increasing costs, as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

A. the cost of reducing 70 percent of the dust in the factory will be the same as the cost of reducing the first 50 percent of the dust in the factory. B. the cost of reducing 70 percent of the dust in the factory will be less than the cost of reducing the first 50 percent of the dust in the factory. C. the cost of reducing 70 percent of the dust in the factory will be greater than the cost of reducing the first 50 percent of the dust in the factory.

Economics

The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.When the firm uses 40 units of labor, how much output does it produce?

A. 1,600 units B. 2,800 units C. 4,000 units D. 400 units E. none of the above

Economics

Total cost is

A) \TFC - TVC. B) TFC/TVC. C) TFC + TVC. D) AFC + AVC.

Economics