Households interact with business firms by:
a. buying resource services from business firms.
b. paying wages for the use of labor.
c. selling goods and services to firms.
d. receiving payments from firms for use of resource services.
e. paying rent to firms for the use of land.
Question 2
An inefficient allocation of resources or unusually high unemployment:
a. causes the production possibilities curve to shift inward.
b. causes the production possibilities curve to shift outward.
c. can each be illustrated by a point inside the production possibilities curve.
d. can each be illustrated by a point outside the production possibilities curve.
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