What are the flows in the market economy that go from firms to households and the flows from households to firms?
What will be an ideal response?
On the real side of the economy, goods and services flow from firms to households. On the monetary side of the economy, payments for factors of production, wages, rent, interest, and profits, flow from firms to households. Flowing from households to firms on the monetary side of the economy are the expenditures on goods and services and on the real side are the factors of production, labor, land, capital, and entrepreneurship.
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The supply of money is easier to control with commodity money than it is with fiat money
Indicate whether the statement is true or false
A rightward shift of the Mexican demand curve for foreign exchange will
a. decrease the price of foreign exchange in Mexico b. increase the value of the peso c. make foreign goods less expensive in terms of pesos d. make foreign goods more expensive in terms of pesos e. make Mexican goods more expensive in terms of foreign exchange
If all of the following examples are elastic, which one will most likely have a decrease of revenue?
a. The price of radios rises. b. The price of sports drinks falls. c. The price of picture frames remains constant. d. The quantity supplied of eye liner remains constant.
Early doubters of the claims that Head Start could end the cycle of poverty based their conclusions on
A. what they perceived to be statistical flaws in the original research. B. the claim that no matter how good the program was it could not make up for the home environment. C. the claim that the original research was fraudulent. D. A) and B).