In a circular flow diagram of the economy, households and businesses interact
a. in both product markets and resource markets
b. in neither product markets and resource markets
c. in product markets but not resource markets
d. in resource markets but not product markets
e. very rarely
A
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Which institution tends to increase specialization in society?
A) Barter B) Government planning bureaus C) Money D) Price regulation
Refer to Figure 2-8. If Vidalia chooses to produce 80 dozen roses, how many orchids can it produce to maximize production?
A) 24 dozen orchids B) 48 dozen orchids C) 60 dozen orchids D) 74 dozen orchids
Based on the transactions in the above table, what is the change in the U.S. balance of merchandise trade?
A) $11,000 B) $29,700 C) -$30,000 D) -$31,000
All of the following are ways in which government can promote economic development except
a. encouraging foreign direct investment b. nationalizing industries to create efficiency c. encouraging competition d. providing an infrastructure e. promoting saving and investment