ECON summer class

In the ______________, households receive goods and services and pay firms for them.

goods and services market

In the circular flow diagram model:

households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses. businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

Goods that are made abroad and sold domestically are known as _____________.

Imports

Households sell their ______________ as workers to firms in return for wages, salaries, and benefits.

Labor

Five years olds are very good economists because they understand constraints.

True

Which of the following lies primarily within the realm of macroeconomics?

a study of how tax cuts stimulate aggregate production

Which of the following items would be considered scarce?

All of the above

Which of the following best characterizes the circular flow of income?

Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses.

Specialization:

Can lead to an increase in overall production

In countries like _____________ the command economy predominates.

Cuba and North Korea