Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M. What is market K and who are economic agents M?

A) K = product markets; M = firms B) K = factor markets; M = firms
C) K = product markets; M = households D) K = factor markets; M = households

D

Economics

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The key idea behind price discrimination is to convert consumer surplus into

A) a barrier to entry. B) economic profit. C) deadweight loss. D) monopoly power. E) total cost.

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Government restrictions on the use of an open-access resource

a. may improve efficiency b. will decrease efficiency c. are unnecessary d. contribute to pollution of the resource e. contribute to depletion of the resource

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