Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?
a. Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms.
b. The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets.
c. Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms.
d. The firms in the factor markets pay to households in the form of wages, interest, rent and profit?for resources demanded.
e. The circuit is completed when the payments flow from households, through the product markets, and to the firms for the goods and services they demand.
c
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If the United States has a net export surplus, which of the following must be true?
A) Domestic private saving must be greater than net foreign investment. B) Net foreign investment must be positive as well. C) Domestic public saving must be greater than net foreign investment. D) The balance on the financial account must equal the balance on the current account.
Which was not a result of the California gold rush?
a. A substantial increase in the money supply. b. A large increase in GNP. c. A significant decrease in the prices of farm goods. d.
Assuming that generic brands are inferior goods, an increase in consumer income, other things being equal, will cause a(n):
a. leftward shift in the demand curve for generic goods. b. downward movement along the demand curve for generic goods. c. rightward shift in the demand curve for generic goods. d. upward movement along the demand curve for generic goods.
?Figure 7.1 shows the U-shaped cost curves for a producer. In the figure below, A is the marginal cost curve, B is the average variable cost curve, and C is the average total cost curve. The vertical distance between lines B and C at any level of output represents _____.
a. ?average total cost b. ?average marginal cost c. ?marginal cost d. ?average fixed cost e. ?average variable cost