In the simple circular flow model:
a. Businesses are sellers of both resources and products]
b. Households are buyers of resources and demanders of products
c. Households are buyers of products and sellers of resources
d. Businesses are sellers of resources and demanders of products
Answer: c. Households are buyers of products and sellers of resources
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A surplus quantity will occur when
a. quantity demanded is greater than quantity supplied. b. price is above equilibrium. c. demand is elastic. d. price is below equilibrium.
Why can't a monopolistic competitor earn economic profits in the long run?
What will be an ideal response?
Which employer is discriminating based on personal preferences?
a. Jorge, who tries to interview candidates from a variety of backgrounds b. Ryder, who interviews only whites because her last two white hires were very productive c. François, who does not interview women because he does not want to be around them d. Bessie, who does not interview women because the last two she hired were unproductive
When evaluating whether or not to make an investment, one should focus on the ________ because doing so takes into account anticipated inflation.
A. exchange rate B. real interest rate C. junk bond rate D. nominal interest rate