In the circular-flow diagram,
a. firms own the factors of production.
b. the factors of production are labor, land, and capital.
c. the factors of production are also called "output.".
d. All of the above are correct.
b
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XYZ Corporation operates in a perfectly competitive market and is currently maximizing profit. To keep the firm's costs low, XYZ's managers have decided to dump waste in a nearby river
Explain why the level of output currently produced by XYZ is not efficient.
Indifference curves for perfect substitutes must be parallel lines with a slope of negative one
Indicate whether the statement is true or false
According to the textbook, government price controls fail because:
A. bureaucrats lack accurate market data. B. firms ignore the price controls. C. legislation cannot alter basic economic incentives. D. they are not enforced by government.
When the price level increases, the real value of people’s money holdings
a. falls, so they buy more. b. falls, so they buy less. c. rises, so they buy more. d. rises, so they buy less.