In the circular flow model, the factor markets are the markets in which
A) consumption goods and services are bought and sold.
B) government goods and services are provided.
C) land, labor, capital, and entrepreneurship are bought and sold.
D) investment goods and services are bought and sold.
E) governments impose all their taxes.
C
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Explain the difference between diminishing returns to labor and diminishing marginal returns to labor
What will be an ideal response?
In 2009, actual output in the U.S. was 4.7 percent below the potential output. This implies that the: a. unemployment in the U.S. was below its natural rate. b. poverty level in the U.S. was below average. c. there was a recessionary gap in this economy
d. there was an expansionary gap in this economy. e. there was an excess demand in this economy.
The law of diminishing marginal productivity holds:
A. in the long run. B. when all inputs are fixed. C. when all inputs are variable. D. in the short run.
Fiat money refers to a monetary system in which gold backs up paper money.
Answer the following statement true (T) or false (F)