Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN: 9781285165912
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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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.
In the circular-flow diagram, firms are sellers in
Select one:
a. the factors of production market
b. both markets
C. the goods and services market.
d. neither market
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 sellers
Chapter 2 Solutions
Principles of Macroeconomics (MindTap Course List)
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- 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 marketsarrow_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_forwardEconomists 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.arrow_forward
- Give 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_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_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
- 2) 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_forwardIn 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_forwardWhat 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_forward
- 41. 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_forward5 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_forwardSuppose that Canada produces two goods: lumber (y) and fish (x). It has 18 million workers, each of whom can cut 10 feet of lumber or catch 20 fish each day. a. The maximum amount of lumber Canada could produce in a day is Blank 1 million feet of lumber. b. The maximum amount of fish it could produce in a day is Blank 2 million fish.arrow_forward
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