The simple circular flow model shows that workers and capital owners offer their services to firms through the
What will be an ideal response?
resource markets.
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Use the economic way of thinking to complete the following statement: An entrepreneur who owns his own building
A) enjoys the building as a free good. B) sacrifices rental income he could have been earned on the building. C) enjoys lower costs than other entrepreneurs who choose to rent buildings from others. D) enjoys larger economic profits compared to other entrepreneurs who choose to rent buildings from others.
The income effect due to a price decrease will result in an increase in the quantity demanded for
A) an inferior good. B) a public good. C) a Giffen good. D) a normal good.
A low-productivity country will tend to avoid free trade with a high-productivity country. The low-productivity country will be exploited and lose industries in which it has a comparative advantage
a. True b. False
Every year from 1954 to 1984, the U.S. economy was characterized by higher output and lower prices
a. True b. False Indicate whether the statement is true or false