Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 2, Problem 2CQQ
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
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.
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 Microeconomics
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