Which of the following would be primarily determined in factor markets?

Which of the following would be primarily determined in factor markets?
 a. The number of computers produced.
 b. The wage rates for high school teachers.
  c. The price of automobiles.
 d. Sales tax revenues.

Question 2

If workers and firms expect increases in future prices, it can lead the short run aggregate supply curve to shift left.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

Which of the following statements about transfer payments is true?
 a. Transfer payments are not included in total government expenditures.
  b. Transfer payments involve the international remittance of funds.
  c. Transfer payments refer to the transfer of money by the commercial banks to the people.
  d. Transfer payments are made by the government to taxpayers.
  e. Transfer payments are made when governments purchase goods and services.

Question 4

In the simple circular flow model:
 a. firms are suppliers of resources and demanders of products.
 b. households are suppliers of products and demanders of resources.
  c. households are demanders of products and suppliers of resources.
  d. firms are the suppliers of both resources and products.

Question 5

A temporary decrease in the price of oil will shift the short run aggregate supply curve right but not shift the long run aggregate supply curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

Which of the following is true of the U.S. government?
 a. The government in the United States takes the form of a single-party state where opposition parties are not legally allowed to take power.
  b. The size of the federal government in the U.S. has been declining since 1930.
  c. Employment in the government sector currently exceeds employment in the manufacturing sector.
  d. The U.S. federal government plays a much smaller role than state and local government due to states' rights.
  e. The service sector of the U.S. economy employs more number of people than the U.S. government.

Question 7

The simple circular flow model shows that workers and owners of land and capital offer their services through:
 a. product markets.
  b. factor markets.
 c. money markets
 d. government.

Question 8

An increase in investment combined with a decrease in education would have an indeterminate effect on both short run and long run aggregate supply.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

The public sector of the U.S. economy includes:
 a. the federal, state, and local government.
  b. multinational corporations and the federal government.
  c. the Federal Reserve bank of the U.S.
  d. the judiciary and the federal government.
  e. households.

Question 10

In a simple circular flow model,
 a. households are suppliers of resources.
 b. households are demanders of final products.
  c. firms are demanders of resources.
 d. all of the above are true.

Question 11

A disaster that destroys a large part of current agricultural output will not change LRAS, while a disaster that destroys the capital stock in a major city will reduce LRAS.
 a. True
  b. False
  Indicate whether the statement is true or false