The circular flow model shows that the labor supplied by households takes place in the:
a. Money markets
b. Resource markets
c. Stock markets
d. Product markets
Answer: b. Resource markets
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Induced expenditure includes
A) consumption expenditure, government expenditure on goods and services, and imports. B) investment, consumption expenditures, and exports. C) consumption expenditure and exports. D) consumption expenditure and government expenditure on goods and services. E) consumption expenditure and imports.
Securitization refers to
A) changing the mix in a financial portfolio away from stocks and toward bonds. B) selling directly to investors loans or securities that were formerly held by financial intermediaries. C) banks insisting that collateral be supplied on previously unsecured loans. D) reducing the exposure of a bank's portfolio to interest rate risk.
Inflation is
A. generally steady from year to year. B. generally beneficial to countries. C. one of the key measures in the GDP. D. one of the key measures of the health of an economy.
If an industry is a natural monopoly and regulators decide that the firm must price at marginal cost, then consumers will be ________ off than if the firm was unregulated and the firm's owners will be ________ off than if it was unregulated
A) better; better B) better; worse C) worse; better D) worse; worse