Where does profit enter in the circular flow? Why?
What will be an ideal response?
Profit is a payment made to entrepreneurs just as wages are a payment made to labor. Entrepreneurs must be rewarded for providing their services, and profit is the reward. Hence, profit is a cost of production.
Economics
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Which of the following occurs in the factor market?
A) households exchange resources for goods and services. B) firms exchange money for resources. C) firms exchange goods and services for resources. D) households exchange money for goods and services.
Economics
The figure above shows that the lowest wage rate for which someone is willing to work is
A) $3 an hour. B) $5 an hour. C) $6 an hour. D) $7 an hour. E) $4 an hour.
Economics