Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

question 38

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-In a market economy, _____ own(s) all the basic resources or factors of production.

• A)households
• B)the federal government
• C)the Federal Reserve bank
• D)the local government
• E)business firms

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale in the market.

Aluminum Ore Reserves

Refers to the total amount of aluminum ore available for mining in a specific area or globally, which is crucial for industrial production.

Price-Taking Assumption

The assumption that individual firms or consumers do not have the power to influence market prices due to their small size relative to the market.

Free Entry Assumption

The free entry assumption posits that in a competitive market, new firms are free to enter the market and compete without facing significant barriers.