Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 2, Problem 2QCMC
To determine
The role of households and firms in the market for factors of production in circular flow.
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Students have asked these similar questions
The circular-flow diagram illustrates that, in marketsfor the factors of production,a. households are sellers, and firms are buyers.b. households are buyers, and firms are sellers.c. households and firms are both buyers.d. households and firms are both sellers.
Economists refer to the inputs that firms use to produce
goods and services as
a. derived factors.
b. derived resources.
c. factors of production
d. instruments of revenue.
According to a simple circular-flow diagram, how many markets do households and firms interact in?
A. four types of markets
B. one type of market
C. two types of markets
D. three types of markets
Chapter 2 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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- In the factors of production market Select one: a. households and firms are both buyers b. households and firms are both sellers c. households are sellers and firms are buyers. d. households are buyers and firms are sellersarrow_forwardGive typing answer with explanation and conclusion Which of the following illustrates goods markets? A. Maggie took an educational loan of $10,000. Safeway sells milk at $4.35 a gallon. B. Anna got a job with a public firm. Smith wants to take a vacation in December. C. Walmart sells potatoes at $2.14 a pound. Ann bought a new condo for $200,000. D. Banks have raised interest rates to 2.5 percent. Ryan enjoys playing chess.arrow_forwardWhat is a ‘final good’? Select one: a. A good not used as an input in the production process b. A natural resource used to produce a good c. A good purchased as an input in the production process d. A good used in the production of another goodarrow_forward
- What is ‘Toyota is contemplating increasing the production of SUVs based on projected future consumer demand’ classify as? a. Micro, examining one individual b. Micro, examining one specific firm c. Micro, examining one sectorarrow_forward2) Ben and Jerry make two types of ice cream: Chubby Hubby and Chunky Monkey. For each hour that Ben and Jerry work, they can make either 6 quarts of Chubby Hubby or 3 quarts of Chunky Monkey. Ben and Jerry work 8 hours each day. a. If they only make Chunky Monkey, how much can they produce? b. If they only make Chubby Hubby, how much can they produce? c. What is the situation if they produce 12 Chunky Monkeys and 16 Chubby Hubbys? d. What would happen if someone asked for 18 Chunky Monkey and 18 Chubby Hubby?arrow_forwardUse the graph below to answer the question. Capital,goods B A Point B Point D Point E Point A CO O Consumer goodsarrow_forward
- 5 8 Market for Factors of Production 7 6 Bank of America pays rent for its office rentals. O Dale pays for his movie ticket. O Peter buys gourmet jam. O Turner Construction rents trucks for its business. 2 3 Market for Goods & Services Which of the descriptions below best matches the flow described by #5? Hint: To see the origin of the flow, pay attention to the subject of the sentence, are we talking about a firm or a household? To see the kind of flow, first, think whether it is a monetary flow or a real flow and, if it's a real flow, think whether we are talking about goods & services or about factors of production -- this will help you identify the market involved. Target earns big revenue on Black Friday. O Spencer receives wages for tutoring. O Laura offers her labor delivering sandwiches for Jimmy John's. O Safeway sells groceries. 4 3/1 1 Secondsarrow_forward41. Ahmed is a new student in the economics course. On the first day of the course the teacher told him about Micro and Macroeconomics in detail. Which of the following illustrates Micro and Macroeconomics? a. All of these. b. Study of the individual consumer is Microeconomics and the study of all consumers are Macroeconomics c. Study of one product is microeconomics and study of all products are macroeconomics d. Study of one person’s income is microeconomics and study of national income is macroeconomicsarrow_forwardon 2,3 In the factors of production market Select one: O a. households and firms are both sellers O b. households are buyers and firms are sellers O c. households are sellers and firms are buyers. O d. households and firms are both buyersarrow_forward
- In the factors of production market Select one: O a. households and firms are both sellers O b. households are buyers and firms are sellers Oc households are sellers and firms are buyers. O d. households and firms are both buyersarrow_forwardExplain, how does the economy as a whole works? And which economic agents are of the greatest importance in determining what goods and services are produced?arrow_forwardEverything is made up of the four factors of production. Look at the shirt you have on right now. List the four factors of production and give a specific example of each which might have been used in the production of your shirt. You have to be specific with each factor. You cannot say "resources" or "land".arrow_forward
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