In the factor market:
A. households supply factors of production to business and are paid by business for doing so.
B. government produces goods and services and supplies them to households and business.
C. business produces goods and services and sells them to households and government.
D. households supply factors of production to business and are paid by government for doing so.
Answer: A
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Refer to Figure 10.2. Assume the economy is initially at equilibrium at potential GDP of $500 billion. If the MPC = 0.80 , and real GDP falls to Y2 = $400 billion, the vertical distance between AE1 and AE2 must be
A) $8 billion. B) $20 billion. C) $80 billion. D) $100 billion.
Average product is at a maximum when the number of workers that are hired is
A) 1. B) 2. C) 3. D) 4.
All sellers may be tempted to raise the price of what they sell, but a negative unintended effect of raising the price could be __________ in units sold large enough to __________ the seller's total revenue earned
A) an increase; raise B) an increase; lower C) a decrease; raise D) a decrease; lower
Which of the following goods or services are among top U.S. imports?
a. aircraft b. education c. computers d. soybeans