Markets
The interaction between the buyers and sellers of a good or service is called a market. Two important economic markets are factor markets and product markets.
The factor market refers to the buying and selling of the factors of production. The factors of production (land, labor, capital, and entrepreneurship) are the resources used to produce goods and services.
Producers offer goods and services for sale in product markets. Individuals spend the money they have earned in the factor market (for instance, wages or the income from selling land) to make purchases in product markets.
Which statement is based on the text?
- A. Individuals spend their income in factor markets.
- B. Entrepreneurs profit from participation in product markets.
- C. Individuals sell their labor in factor markets.
- D. Resources are traded in product markets.
Correct Answer & Rationale
Correct Answer: C
Option C accurately reflects the concept that individuals offer their labor in factor markets, where resources like labor are exchanged for wages. This aligns with economic principles regarding labor supply. Option A is incorrect since individuals do not spend income in factor markets; rather, they purchase goods and services in product markets. Option B misrepresents the role of entrepreneurs, who primarily earn profits through innovation and sales in product markets, not simply from participation. Option D is also misleading, as resources are exchanged in factor markets, while product markets focus on the sale of finished goods and services.
Option C accurately reflects the concept that individuals offer their labor in factor markets, where resources like labor are exchanged for wages. This aligns with economic principles regarding labor supply. Option A is incorrect since individuals do not spend income in factor markets; rather, they purchase goods and services in product markets. Option B misrepresents the role of entrepreneurs, who primarily earn profits through innovation and sales in product markets, not simply from participation. Option D is also misleading, as resources are exchanged in factor markets, while product markets focus on the sale of finished goods and services.
Other Related Questions
What is the meaning of confederation in this passage?
- A. a government in which the whole population of a country votes to make laws for the people
- B. a political union in which power is divided between a strong central authority and the various other political units
- C. a political union in which the component units retain significant independence from the central government
- D. a government in which people vote to elect representatives who make laws for the people
Correct Answer & Rationale
Correct Answer: C
Confederation refers to a political union where individual components maintain considerable autonomy while cooperating for mutual benefit. Option C accurately captures this definition, emphasizing the independence of component units from the central authority. Option A describes a direct democracy, which is not aligned with the concept of confederation. Option B suggests a balance of power that leans towards a strong central authority, contradicting the essence of a confederation. Option D outlines a representative democracy, which does not inherently involve the independence of component units, thus misrepresenting the nature of a confederation.
Confederation refers to a political union where individual components maintain considerable autonomy while cooperating for mutual benefit. Option C accurately captures this definition, emphasizing the independence of component units from the central authority. Option A describes a direct democracy, which is not aligned with the concept of confederation. Option B suggests a balance of power that leans towards a strong central authority, contradicting the essence of a confederation. Option D outlines a representative democracy, which does not inherently involve the independence of component units, thus misrepresenting the nature of a confederation.
Based on the timeline and the map, what was one way African Americans dealt with Jim Crow laws?
- A. by taking service jobs in southern cities
- B. by seeking factory jobs in urban areas of the North
- C. by becoming tenant farmers in other parts of the South
- D. by gaining technical skills in northern schools
Correct Answer & Rationale
Correct Answer: B
African Americans responded to Jim Crow laws by seeking factory jobs in urban areas of the North, as this migration offered better economic opportunities and a chance to escape oppressive conditions in the South. Option A, taking service jobs in southern cities, often perpetuated the same discriminatory practices found under Jim Crow. Option C, becoming tenant farmers in other parts of the South, did not provide significant relief from the systemic racism and economic hardship prevalent in that region. Option D, gaining technical skills in northern schools, while beneficial, was not a widespread or immediate solution compared to the mass migration to northern factories.
African Americans responded to Jim Crow laws by seeking factory jobs in urban areas of the North, as this migration offered better economic opportunities and a chance to escape oppressive conditions in the South. Option A, taking service jobs in southern cities, often perpetuated the same discriminatory practices found under Jim Crow. Option C, becoming tenant farmers in other parts of the South, did not provide significant relief from the systemic racism and economic hardship prevalent in that region. Option D, gaining technical skills in northern schools, while beneficial, was not a widespread or immediate solution compared to the mass migration to northern factories.
Which statement is supported by both the table and the map?
- A. Differences in the total populations of the states led to political differences between the North and the South.
- B. Differences among the economies of the states contributed to political differences between the North and the South.
- C. Political differences between the North and the South reflected differences in education among the states.
- D. Political differences between the North and the South reflected differences in the standards of living in the states.
Correct Answer & Rationale
Correct Answer: B
Option B is supported by both the table and the map, as they illustrate how varying economic structures—such as agriculture in the South versus industrialization in the North—contributed to distinct political ideologies and policies. Option A incorrectly attributes political differences solely to population size, overlooking the economic factors at play. Option C suggests education differences as the main cause, which is not evident in the provided data. Option D implies that living standards were the primary influence, but the economic context is more directly linked to the political divide. Thus, B effectively encapsulates the relationship between economy and political differences.
Option B is supported by both the table and the map, as they illustrate how varying economic structures—such as agriculture in the South versus industrialization in the North—contributed to distinct political ideologies and policies. Option A incorrectly attributes political differences solely to population size, overlooking the economic factors at play. Option C suggests education differences as the main cause, which is not evident in the provided data. Option D implies that living standards were the primary influence, but the economic context is more directly linked to the political divide. Thus, B effectively encapsulates the relationship between economy and political differences.
Based on the excerpt, which change was a result of the National Security Act of 1947?
- A. The Central Intelligence Agency replaced the War Department.
- B. The National Security Council gained control over the Department of Defense.
- C. The Department of Homeland Security replaced the War Department.
- D. The Department of the Navy became part of the Department of Defense.
Correct Answer & Rationale
Correct Answer: D
The National Security Act of 1947 reorganized the U.S. military and intelligence community. Option D accurately reflects that the Department of the Navy became part of the newly established Department of Defense, streamlining military operations. Option A is incorrect; the CIA was created but did not replace the War Department directly. Option B is misleading; while the National Security Council was established, it does not control the Department of Defense. Option C is factually incorrect, as the Department of Homeland Security was created later, in 2003, not as a result of the 1947 Act.
The National Security Act of 1947 reorganized the U.S. military and intelligence community. Option D accurately reflects that the Department of the Navy became part of the newly established Department of Defense, streamlining military operations. Option A is incorrect; the CIA was created but did not replace the War Department directly. Option B is misleading; while the National Security Council was established, it does not control the Department of Defense. Option C is factually incorrect, as the Department of Homeland Security was created later, in 2003, not as a result of the 1947 Act.