What role do firms play in output markets? What role do firms play in factor markets?
What will be an ideal response?
Firms are the sellers in output markets and are the buyers in factor markets.
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Suppose the current level of output is 5000. A 10% increase in productivity would increase the current level of output to
A) 5050. B) 5100. C) 5500. D) 6000.
If nominal GDP in some year is $280 and real GDP is $160, then the GDP price index for that year is:
A. 175. B. 57. C. 160. D. 280.
In monopolistic competition, product improvement and development
A) are valued by the consumer at an amount equal to the costs the producers have incurred. B) yields a marginal benefit to the producer equal to price of the good. C) is less than its efficient amount. D) None of the above answers are correct.
The Doing Business reports are considered by many economists to have contributed to economic growth and poverty reduction. The effectiveness of the reports may be attributed to ________
A) their encouragement to governments to reduce impediments to business B) their encouragement to businesses to migrate to business-friendly locations C) their deepening of economists' understanding of economic growth D) their exposing of corrupt officials and practices