In the circular flow diagram, households demand ________ and supply ________.

A. goods and services; labor
B. labor; goods and services
C. labor; labor
D. goods; services


Answer: A

Economics

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You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50Which project has the greatest expected value?

A. A B. B C. C D. D

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Interest is paid to

A) all holders of stock. B) individuals who own gold. C) owners of capital. D) borrowers of funds.

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Which of the following is closest to a perfectly competitive market?

A. the market for breakfast cereal B. the market for automobiles C. the market for corn D. the pizza market

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The total cost of a firm is $50, the average variable cost is $2, and the average fixed cost is $3. How may units of the output does the firm produce?

A) 5 units B) 10 units C) 15 units D) 18 units

Economics