Families Receive Income from Two Primary Sources

question 89

Multiple Choice

Families receive income from two primary sources:

• A)resource earnings and transfers
• B)transfers and subsidies
• C)wages and rents
• D)transfers and gifts
• E)interest and dividends

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Definitions:

Price-Searcher Firm

A company that operates in a market with differentiated products and has some control over the price of its product because it faces a downward-sloping demand curve.

Profit Maximization

is the process or strategy by which a firm adjusts its production and sale levels to achieve the highest possible profit.

Price Takers

Firms or individuals who accept the market price as given and have no influence to change it.

Product Variety

The range of different goods or services offered by a company or available in a market.