In the factor market, households A) sell resources. B) are both buyers and sellers of resources. C) are neither buyers nor sellers of resources. D) buy resources. ANSWER A
Date: September 2nd, 2020
Suppose an individual buys a new CD of her favorite musical artist. This purchase has taken place in the A) labor markets. B) factor markets. C) resource markets. D) product markets. ANSWER D
Date: September 2nd, 2020
In the product markets, households A) are neither buyers nor sellers in the market. B) are the buyers of goods and services. C) are the sellers of resources. D) none of the above is correct. ANSWER B
Date: September 2nd, 2020
Which of the following would most likely be sold in the product markets? A) iron ore B) entrepreneurial ability C) a new car D) stocks and bonds ANSWER C
Date: September 2nd, 2020
The value of total output and total income in the simple circular flow model A) include only intermediate goods. B) are equal to each other. C) are measures of the economy’s level of savings. D) are related in the sense that national income is less than national product. ANSWER B
Date: September 2nd, 2020
Which of the following statements is FALSE? A) Transactions in which households buy final goods and services occur in the factor market. B) Saving is the difference between consumer income and expenditures. C) The value of total output is identical to total income. D) One definition of total income is that it is the annual […]
Date: September 2nd, 2020
Which of the following statements is FALSE? A) Total income is always greater than total output. B) In the circular flow model, households sell factor services to businesses in return for factor payments. C) Businesses sell goods and services to households who use their income to pay for them. D) The value of total income […]
Date: September 2nd, 2020
Which of the following is consistent with the circular flow of income? I. Goods and services flow in one direction. II. Payments and incomes flow in one direction. III. Sellers receive less than what buyers spend. A) I only B) II only C) III only D) Both I and II ANSWER D
Date: September 2nd, 2020
According to the circular flow, the value of total output produced and total income A) will be equal. B) should increase by the unanticipated rate of inflation. C) should differ by the value of intermediate goods. D) will always be increasing in a capitalist economy. ANSWER A
Date: September 2nd, 2020
The duration of unemployment tends to A) increase when employment increases. B) increase when business activity decreases. C) increase when the labor force shrinks. D) stay consistently the same over long periods of time. ANSWER B
Date: September 2nd, 2020
