What is the difference between product markets and factor markets?
What will be an ideal response?
Product markets are markets for goods and services. Factor markets are markets for the factors of production, which are the inputs used to make goods and services.
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In the United States, the wealthiest 10 percent of households own about ________ of total wealth
A) 40 percent B) 66 percent C) 90 percent D) 55 percent
Suppose the government reduces its budget deficit at the same time that energy prices rise sharply. Which of the following is most likely to happen?
a. The price level will rise, since higher energy prices increase the cost of production b. Real GDP will fall since both events will tend to cause an economic contraction. c. The price level will fall because the aggregate demand curve has shifted leftward. d. Real GDP will rise as less government spending leads to more opportunities for the private sector. e. Both the price level and real GDP will fall.