How does the market for inputs like labor differ from the market for goods and services?
What will be an ideal response?
A factor of production is used in the production of other goods. The market for factors of production like labor is different from the market for goods and services in that the demand for factors is derived from the demand for final goods and services.
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An economic model includes
A) only normative statements. B) no use of marginal concepts. C) all known details in order to increase its accuracy. D) only details considered essential.
The utility maximizing consumption bundle for an individual can be found by locating _____
a. the individual's bliss point b. any point on an indifference curve touching the budget constraint c. the highest point on an individual's indifference curve d. the point tangent to an individual's budget constraint