The circular flow diagram includes the following players:
a. government, firms, financial markets, goods markets
b. factor markets, goods markets, financial markets, firms
c. households, firms, government, rest of the world
d. households, factor markets, goods markets, firms
c
You might also like to view...
Prices in resource markets
a. provide users with information concerning the relative scarcity of resources. b. encourage the use of a resource now if its price is expected to rise in the future. c. provide suppliers with little incentive to develop more of those resources that are intensely demanded by users. d. have little impact on productive decisions unless they are closely regulated by the government.
The largest single component of aggregate demand is ______.
a. investment spending b. exports c. disposable income d. consumption
After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?
A) The average product of labor is negative. B) The marginal product of the 8th worker is negative. C) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired. D) Suzie's profits would be greater if she did not hire the 8th worker.
Direct taxes are levied directly on people or corporations.
Answer the following statement true (T) or false (F)