Author Question: What role do business firms play in output markets and in factor markets? What will be an ideal ... (Read 96 times)

burchfield96 · **on:** Jun 29, 2018

What role do business firms play in output markets and in factor markets?

What will be an ideal response?

Question 2

What is the connection between the gold held at the Fort Knox Bullion Depository in Kentucky and the U.S. money supply?

What will be an ideal response?

mammy1697 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

In output markets, firms supply goods and services. In factor markets, firms demand factors of production.

Answer to Question 2

Although under the gold standard all U.S. paper money had to be backed by gold, today the gold at Fort Knox has no connection to the U.S. money supply since modern currencies like the U.S. dollar are fiat money.