What does the circular flow model show?
(A) What inputs are required for what outputs.
(B) How many firms can support the needs of how many households.
(C) How profits are made.
(D) The interactions between households and businesses in the free market.
Ans: (D) The interactions between households and businesses in the free market.
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In the supply and demand model, a subsidy granted to sellers is illustrated by
a. a downward shift in the demand curve, by the per unit amount of the subsidy. b. an upward shift in the demand curve, by the per unit amount of the subsidy. c. a downward shift in the supply curve, by the per unit amount of the subsidy. d. an upward shift in the supply curve, by the per unit amount of the subsidy.
Which if the following is the best example of derived demand?
A. Janice got a Samsung Galaxy Tab for her birthday, and now her best friend Tamika wants one for her birthday. B. The demand for movie theater ushers increases when more consumers choose to go to movie theaters. C. When the price of Honda Accords increased, the demand for Nissan Altimas went up. D. More peanut butter is demanded as the price of strawberry jam falls.