Households
A) have no involvement in the circular flow in a market economy.
B) sell goods in the product market.
C) purchase resources in the factor market.
D) sell resources in the factor market.
D
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A decrease in government spending will result in a decrease in the price level and a decrease in real GDP in the long run
Indicate whether the statement is true or false
In the short run, a country's exchange rate is determined by:
A. supply and demand. B. monetary policy. C. purchasing power parity. D. the domestic inflation rate.
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
Picking up the 20th bag of litter would:
A. be socially efficient, but would not be consistent with the actions of self-interested individuals. B. be socially efficient. C. create deadweight loss. D. increase total economic surplus.
A decrease in price will lead to an increase in the quantity demanded.
a. true b. false