Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
20th Edition
ISBN: 9780077660819
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 2.2, Problem 1QQ
To determine
The circular flow in the two sector model.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
What 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 good
a. What do households do in the factor market, buy or sell?
A. buy
B. sell
b. In the Factor Market do firms buy or sell?
A. buy
B. sell
Which of the following is true in the markets for factors of production in the circular-flow diagram,
a. households provide firms with labor, land, and capital.
b. households provide firms with savings for investment.
c. firms provide households with goods and services.
d. firms provide households with revenue.
Chapter 2 Solutions
Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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Similar questions
- How to classify goods as consumption goods and capital goods? Is there any specific way to do so?arrow_forwardIntermediate vs. Final Goods For each blank place either an “I” if the scenario is an intermediate good, or an “F” if it is a final good. 1) Shampoo is bought and used by a hair stylist in the mall. 2) A family buys some finger paint for their child to use. 3) A person buys a tire to replace to flat one on their car. 4) A hotel chain buys a box of pens. 5) Flour is bought and used to bake a cake to be sold at a bakery. 6) Someone buys a steak to grill at home. 7) An accounting firm buys calculators for its accountants. 8) A person buys shampoo to use at home. 9) Flour is bought and used to bake a cake for a birthday. 10) A student buys a pack of pens to do their homework. 11) A restaurant prepares a steak for its customers. 12) A factory buys tires to place on their cars. 13) An artist buys paints for a painting, with the intention of keeping it. 14) A calculator is bought and used for…arrow_forwardIn 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_forward
- 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_forwardThe end use of the goods categorizes the good as intermediate good and final good. True/Falsearrow_forwardIn the simple circular-flow diagram, in which market are households sellers? the factors of production market the goods and services market both the factors of production market and the goods and services market neither the factors of production market nor the goods and services marketarrow_forward
- Question 13 Which one of the following is an example of the economic activity of consumption? An automobile rolls off an assembly line. Sandra wins the lottery. O Hector enjoys watching a sunset. O A new law is passed to improve air quality.arrow_forwardGive an example of a final good and an intermediate good. A _______ is a final good and _______ is an intermediate good. A. tank of gasoline bought by you; jet fuel bought by Southwest Airlines B. new car bought by a student; a used SUV bought by a dealer C. new textbook; a used textbook D. new iPhone bought by a student; a new computer bought by Walmart to manage its inventoriesarrow_forwardThe impact of an increase in the price of computer chips on the market for personal computers. a. Micro, examining one individual b. Micro, examining one specific firm c. Micro, examining one sector of economyarrow_forward
- What determines whether a good is “capital” or a “consumer good”? How it is purchased: with business funds or with personal funds How it is used: to produce further wealth, or to be consumed Where it is located: in a home or in a business Where it is purchased: from a wholesaler or from a retailer Who uses it: the person buying it or an employee of theirsarrow_forwarda. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?arrow_forwardWhich statement best describes the circular flow of an economy?the flow between businesses and resourcesthe exchange of money, goods, and services in an economya circular flow happens only in a resource marketa circular flow happens only in a goods and services marketarrow_forward
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