In the simple circular-flow diagram,
a. households own the factors of production.
b. households buy all the goods and services that firms produce.
c. land, labor, and capital flow from households to firms.
d. All of the above are correct.
d
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Using Figure 9.1, explain what a firm would do in the short run if the market price of its product dropped below P1
What will be an ideal response?
In a monopolistically competitive market, the advantage that a seller has over competitors or newcomers is
A. the high price elasticity of supply for its product. B. the licenses or patents it has received. C. the consumer preference for its brand. D. the high price elasticity of demand for its product.
If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of yen is:
A. $.005. B. $.05. C. $.50. D. $5.
The farther an indifference curve lies from the origin ________
A) the greater the level of individual income B) the lower its utility C) the lower the level of individual income D) the higher its utility