Econ Quiz 1: Intro, PPC, Circular Flow, Comparative Advantage
According to the graph belowm if a country is currently producing at point X, the opportunity cost of producing another consumer good is (see #2)
20 capital goods
Which of the following is true according to the circular flow model? a. Firms are suppliers in both the product and factor market b. Firms are demanders in the product markets and suppliers in the factor markets c. Households are demanders in both the product and factr markets d. Households are demanders in the product markets and suppliers in the factor market e. The gov. is a demander in the product market only
d. Households are demanders in the product markets and suppliers in the factor market
On the basis of the diagram showing an economy's production possibility curve for two goods, which of the following statements must be true? (see #3)
e. I, II, and III
