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When a variable that is not named on either axis of a graph changes, we read the change as a movement along the curve.

A) True
B) False

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Positive statements are descriptive, while normative statements are prescriptive.

A) True
B) False

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In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

A) True
B) False

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In the circular-flow diagram, which of the following is not a factor of production?


A) Labor
B) Land
C) Capital
D) Output

E) B) and D)
F) A) and B)

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