Markets for Goods and Firms Markets for Factors of 10. In the circular-flow diag
ID: 1124187 • Letter: M
Question
Markets for Goods and Firms Markets for Factors of 10. In the circular-flow diagram shown, which arrow shows the flow of spending by households? 11. The four sectors in an expanded circular-flow diagram include Households, government, financial markets, and the rest of the world a. b. Households, firms, government, and financial markets Households, firms, financial markets and the rest of the world c. d. Households, firms, government, and the rest of the world 12. An economic outcome is sald to be efficient if the economy is a. Using all of the resources it has available b. Conserving on resources and not using all it has c Getting all it can from the scarce resources it has available d. Able to produce more than its current production without additional resources 35 25- 10 10 20 30 40 50 60 T0 Tootho 13. On the production possibilities frontier shown, the opportunity cost of getting 15 additional toasters by moving from point D to point Cis a. 10 toothbrushes b. 20 toothbrusles c30 tosbrbe fr the economy to move from point D to d. It is impossible for the economy to move from point D to point CExplanation / Answer
10.
A.
It is the line where the households spends and pays for the goods and services they purchase.
11.
D
The model starts with the households and firms. Afterwards, government joins them to regulate the process. Finally, the economy opens to the rest of the world and fourth sector of rest of the world is created.
12.
C
It has been reflected by the PPF curve. Any point on this curve reflect the efficient output using scarce resources.
13.
D
Point C is outside of the PPF curve, so it cannot be achieved.