The lower portion of the circular flow model contains factor markets in which households provide:
a. labor, money, and machines.
b. savings, spending, and investment.
c. natural resources, labor, and capital.
d. output of all final goods and services produced.
c
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Exhibit 2-11 Production possibilities curves
In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?
A. A major natural disaster. B. An increase in resources. C. An advance in technology. D. A decrease in unemployment.
The value of human capital is determined by
A. the forces of supply and demand for human capital in the market. B. an investment board at the New York Stock Exchange. C. a ranking system of the relative value of different types of education to society. D. a special team of experts in each college and university.