In the markets for the factors of production in the circular-flow diagram, households are buyers and firms are sellers
a. True
b. False
Indicate whether the statement is true or false
False
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What are the two features of a public good?
A) nonrival and excludable B) nonrival and nonexcludable C) rival and excludable D) rival and nonexcludable
Samara's income is $30 a month and she spends all of it on music downloads and gasoline. The price of a music download is $1.50 and the price of a gallon of gasoline is $3
At Samara's best affordable point, her marginal rate of substitution is ________ per video tape. A) 0.5 of a download B) 1 download C) 1.5 downloads D) 2 downloads
If the price of rubber (an input to the production of tires) increases:
A. the supply of tires will decrease. B. the supply of tires will increase. C. the demand for tires will decrease. D. the demand for tires will increase.
Increased trade restrictions
A. Reduce total consumption possibilities. B. Alter a nation's production possibilities. C. Have a neutral impact since the losses cancel out the benefits. D. Increase a trade deficit in the short run.