A factor market is a market in which
A) households buy goods and services.
B) households sell the services of the factors of production they control.
C) firms sell the services of the factors of production.
D) firms sell goods and services.
B
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An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
When you borrow money from a bank, your bank charges you interest on the loan to compensate for all of the following except
A) inflation. B) liquidity risk. C) the risk of default. D) the opportunity cost of other uses for the loaned money.
In the forex, the demand for dollars will increase if:
A. foreigners wish to buy U.S. goods. B. foreigners wish to sell U.S. financial assets. C. interest rates are equal in the US and abroad. D. interest rates are lower in the U.S. relative to interest rates abroad.
As marginal physical product diminishes, marginal revenue product
A. Rises at a diminishing rate and eventually falls. B. Also diminishes. C. Rises. D. Is not affected.