The circular flow model shows that:
a. households are on the demand side of the resource market
b. firms are on the demand side of both the product and resource markets.
c. households are on the supply side of the resource market and the demand side of the product market.
d. firms and governments are on the supply side of the loanable funds market.
e. governments are on the demand side of the product market and the supply side of the resource market.
c
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If an individual uses money from a demand deposit account to purchase a U.S. savings bond
A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 decreases and M2 decreases.
Someone is considered to exhibit risk-seeking behavior if he:
A. has a high willingness to take on situations with risk. B. has a low willingness to take on situations with risk. C. will only participate in high-risk situations. D. will always choose the riskier venture when given two choices.
Since 1970, the federal government budget has never been in surplus
a. True b. False Indicate whether the statement is true or false
Which of the following statements most likely lies within the realm of macroeconomics? a. An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded
b. Due to process innovations in computer chip manufacturing, the market supply of computers increased. c. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces. d. Anticipating that the benefits would outweigh costs involved, an undergraduate student purchases the course textbook.