A.T he circular-flow diagram illustrates that, in markets for the factors of production,

a. households are sellers, and firms are buyers.

b. households are buyers, and firms are sellers.

c. households and firms are both buyers.

d. households and firms are both sellers.

B. A point inside the production possibilities frontier is

a. efficient but not feasible.

b. feasible but not efficient.

c. both efficient and feasible.

d. neither efficient nor feasible.

C. All of the following topics fall within the study of microeconomics EXCEPT

a. the impact of cigarette taxes on the smoking behavior of teenagers.

b. the role of Microsoft’s market power in the pricing of software.

c. the effectiveness of antipoverty programs in reducing homelessness.

d. the influence of the government budget deficit on economic growth.