Which actor in the simplified circular flow model is on the supply side of the factor market?
A. Firms
B. Households
C. Market for goods and services
D. Government
B. Households
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Which of the following is closest to a perfectly competitive market?
A) the computer software market B) the market for handmade guitars C) the market for broccoli D) the market for athletic shoes
Which of the following would increase the amount of an inferior good that buyers would like to purchase?
a. an increase in buyers' incomes b. an increase in the price of a complement c. a decrease in the price of a substitute d. a decrease in buyers' incomes e. a decrease in its expected future price
A rational decisionmaker takes an action if and only if the marginal cost exceeds the marginal benefit
a. True b. False Indicate whether the statement is true or false
Refer to Figure 5.1. In which graph could a shift from BL1 to BL2 represent a doubling of the prices of both Books and DVDs?
A. A
B. B
C. C
D. D