In a market economy
A: households decide which firms to work for and what to buy with their incomes
B: firms decide whom to hire and what to make.
C: a central planner makes decisions about production and consumption.
D: Both a and b are correct.
A: households decide which firms to work for and what to buy with their incomes
B: firms decide whom to hire and what to make.
C: a central planner makes decisions about production and consumption.
D: Both a and b are correct.
举一反三
- The circular-flow diagram illustrates that, in markets for the factors of production, ( ) A: households are sellers, and firms are buyers. B: households are buyers, and firms are sellers. C: households and firms are both buyers. D: households and firms are both sellers.
- What links the decisions of consumers and firms in a market?
- 18) According to the circular flow model A: . in the market for goods and services, households are buyers and firms are sellers. B: . the market for goods and services, households are sellers and firms are buyers. C: . in the market for factors of production, households are buyers and firms are sellers. D: . firms are the owners of the factors of production.
- The<br/>invisible hand refers to() A: how central planners made economic<br/>decisions. B: how the decisions of households and firms<br/>lead to desirable market outcomes. C: the control that large firms have over the<br/>economy. D: government regulations without which the<br/>economy would be less efficient.
- In the simple circular-flow diagram, the participants in the economy are A: firms and government. B: households and firms. C: households and government. D: households, firms, and government.