In the circular flow model
A) households buy goods and services while firms sell goods and services. Firms obtain labor from households, capital from government, and raw materials from firms.
B) households demand goods and services which are supplied by firms, and the firms demand resources that are supplied by intermediate firms.
C) households buy goods and services and firms supply goods. Resources are supplied by other firms.
D) households demand goods and services that are supplied by firms, while supplying resources that are demanded by firms.
D
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Suppose the marginal value of bread in terms of wine is 1/2 bottle of wine per loaf of bread, while the relative price of bread in terms of wine is 1/4 bottle of wine per loaf of bread. Explain how the consumer can adjust his purchases to raise his level of satisfaction.
What will be an ideal response?
All of the following are examples of restraints of trade except which one?
A) price fixing B) predatory pricing C) output restrictions D) bid rigging
In the above figure, if the market price is $10, the firm
A) produces 10 units. B) produces 12 units. C) shuts down operations. D) produces 11 units.
When a labor market fails to reach equilibrium, workers doing the same job can be paid different amounts
a. True b. False Indicate whether the statement is true or false