Additional Stuff From Me Mock Exam Part 1

Question 1

Households ?

Answer 1

Consumption

Question 2

Business ?

Answer 2

Production

Question 3

The u.s. economy can be divided into 3 sectors:

Answer 3

1. Businesses
2. Households
3. Government

Question 4

What do households supply?

Answer 4

Labor and other factors of production to businesses

Question 5

The factor market?

Answer 5

Where households are paid by businesses for their supply of labor and other factors

Question 6

Businesses do what?

Answer 6

Produce goods and services and sell them to households

Question 7

Goods market

Answer 7

Where businesses produce goods and services and sell them to households and the government

Question 8

Q-5: into what 3 sectors are market economies usually broken up into?

Answer 8

1. Households
2. Businesses
3. Government

Question 9

Businesses are on the:

Answer 9

Demand side of factor markets and supply side of goods markets.

Question 10

Keynesian economist definition:

Answer 10

Believes that aggregate demand (total demand) creates by households businesses and the government NOT the dynamics of free markets is the most important driving force in an economy.

Question 11

As long as output rises

Answer 11

Nominal GDP and GDP increase