Supply curves are positively-sloped because of:
a. the inefficient allocation of resources.
b. the law of increasing returns.
c. the increasing opportunity cost of resources.
d. self-interested suppliers seeking economic profit.
e. economies of scale.
c. the increasing opportunity cost of resources.
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In the long run, an increase in FDI in the manufacturing sector will:
a. increase marginal product of labor in the agriculture sector. b. increase marginal product of labor in the manufacturing sector. c. decrease marginal product of labor in the agriculture sector. d. not change the marginal product of labor in either sector
In the circular flow model, households
A) spend earnings from resource sales on goods and services in the product market. B) and firms spend earnings from resource sales on goods and services in the factor market. C) sell goods and services in the input market. D) hire resources sold by firms in the factor market.