Among economic models, the circular-flow diagram is unusual in that it
a. drastically simplifies the real world.
b. features more than one type of market.
c. features flows of dollars.
d. does not involve mathematics.
d
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The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear (a straight line)
a. True b. False Indicate whether the statement is true or false
Factor markets are different from product markets in an important way because
a. equilibrium is the exception, and not the rule, in factor markets. b. the demand for a factor of production is a derived demand. c. the demand for a factor of production is likely to be upward sloping, in violation of the law of demand. d. All of the above are correct.
Which statement is true?
A. Product differentiation can take place even if there are no physical differences among products. B. Price discrimination is not possible in monopolistically competitive firms. C. Economies of scale ensure that monopolistically competitive firms make a profit in the long run. D. The absence of barriers to entry ensures short-run profits for monopolistic competitors.
Pinnacle Finance Bank has a 12 percent reserve requirement ratio. What is Pinnacle Finance’s money multiplier?
a. 6 b. 1.2 c. 8.33 d. 12