Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.
Answer the following statement true (T) or false (F)
True
The factor market is the market in which inputs are supplied by households and demanded by businesses.
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Economists who believe that real GDP may grow slowly because of insufficient demand for investment spending cite three main reasons for the low demand for loanable funds. Which of the following is not one of those reasons?
A) a reduced demand for housing due to slowing population growth B) the continued decrease in the value of the dollar relative to the currencies of major U.S. trading partners C) a smaller capital requirement for modern information technology firms D) the falling price of capital relative to other goods
Price floors set a legal minimum price on a product or commodity
a. True b. False Indicate whether the statement is true or false
Economics is primarily the study of
a. how to make money in the stock market. b. how to find lower cost methods of production. c. the choices we must make among alternatives because of scarcity. d. the proper form of industrial structure for the United States.
Communal property rights and tradition, rather than market institutions, determine economic relationships in many developing countries.
Answer the following statement true (T) or false (F)