MICROECONOMICSMIDTERM1 Version A What is the d There is no

MICROECONOMICS-MIDTERM1 Version A . What is the d ) There is no di There is no di mand curve. An \"increase crease in quai An \"increase antity deman Print Name A movemen achange in t change in change in t change in Factor Markets n a competi ases. Whic ice will de ce will del e change i e change i Firms e law ofs and inc e price o e price o ople\'s i price o 1. Refer to Figure 1. Which arrow represents the flow of goods and services? A) A B) B C) C D) D finers el (The rease ase ir ease i ase il 2. Refer to Figure 1. Which arrow represents the flow of income to households? A) A B) B C) C D) D 3. Refer to Figure 1. Which arrow shows the flow of land, labor, and capital? A) A ?) ? C) C ce el libr

Solution

1) Here in the referred figure, the arrow labelled C shows, the flow of goods and services from the firms to the households which are being used by the factors of production provided by the households.

c) C.

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2) In the referred figure the arrow labelled B shows the flow of income to the household from the firms in return of the factor of production the households provide.

b) B.

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3) In the referred figure, the arrow labelled D shows the flow of capital, labour and land which are being provided by the household to the firms for the production of the goods.

d) D.