EBK ESSENTIALS OF ECONOMICS
7th Edition
ISBN: 8220102452107
Author: Mankiw
Publisher: CENGAGE L
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Question
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
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
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
Chapter 2 Solutions
EBK ESSENTIALS OF ECONOMICS
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- I need the answer as soon as possiblearrow_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_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_forward
- Explain the Market System. Give an in-depth example of a Market System. Explain the Planned System. Give an in-depth example of a Planned System.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_forward1. It is primarily the basis of economic activity a. economics b. scarcity c. social science d. abundance 2. What happen to the demand for tilapia if the price of bangus will go down? a. prices of tilapia remains b. price of bangus remains c. shift to the right d. shift to the left If cruz family lessens their demand expenditures for rice because they want pandesal for their breakfast, this is a. time efficient b. taste and preference c. decrease in income d. saving for cooking gasarrow_forward
- Production Possibilities Frontier Use the following information to complete this assignment. B C DE F G A Units of capital goods 6. 5 4 3 2 1 Units of consumer goods 3 4 5 Step 1: Draw the Y and X axes and number the units. Step 2: Label the Y and X axes and title the graph. Step 3: Plot the production combinations. Step 4: Draw the curve. Step 5: Note the opportunity cost of each variable in terms of the other. 6.arrow_forwardWhat is the circular flow diagram, and what does it demonstrate? What are the two main categories of participants in markets? Which determines in a free market what goods and services are produced?arrow_forwardIn the simple circular-flow diagram, a. households own the factors of production. b. households buy all the goods and services that firms produce. c. land, labor, and capital flow from households to firms. d. All of the above are correct.arrow_forward
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