In the resource market:
A. businesses borrow financial capital from households.
B. businesses sell services to households.
C. households sell resources to businesses.
D. firms sell raw materials to households.
Answer: C
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If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) oil prices. B) taxes. C) government purchases. D) the money supply and a decrease in interest rates.
Assume that the price elasticity of demand for movie theatres is -.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28 . For the theatre to maximize total revenue, it should
a. Charge the same price for both shows, holding other things constant. b. Charge a higher price for the afternoon shows and lower price for the evening shows, holding other things constant c. Charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant d. Need more information
The interest rate that banks pay for borrowing overnight from other banks is called:
a. bank rate. b. target rate. c. federal funds rate. d. real interest rate. e. prime lending rate.
The pre-1973 farm price support program resulted in a(n)
a. substantial increase in the number of farmers b. substantial increase in the number of farms c. excess demand for farm goods d. excess supply of farm goods e. major benefit to consumers of farm goods