How does factor of production flow in the market for the factors of production? a. When domestic investment equals net capital outflow b. When demand equals the domestic investment and net capital outflow c. Household provides labor and firms use labor to make final product d. When the amount people want to save equals supply of loanable funds
Added by Brandon P.
Step 1
Step 1: Household provides labor in the factor market. Show more…
Show all steps
Close
Your feedback will help us improve your experience
Aparna Shakti and 51 other Calculus 3 educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Based on the circular flow model, money flows from businesses to households in a. factor markets. b. product markets. c. neither factor nor product markets. d. both factor and product markets.
Chandra J.
To minimize the cost of producing a given level of output in the long run, a firm must: A) equate the marginal products of all factors of production B) take into account the fixed factors of production C) equate the average cost of all factors of production D) follow the marginal decision rule and equate the ratio of marginal product to price for all factors of production.
Sanchit J.
A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have on factor markets? a. Wages and the rental price of capital both rise. b. Wages and the rental price of capital both falls. c. Wages rise and the rental price of capital falls. d. Wages fall and the rental price of capital rises.
Recommended Textbooks
Calculus: Early Transcendentals
Thomas Calculus
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD