Another term for factors of production is inputs. output. o goods. services. N. Which of the following transactions takes place in the markets for the factors of production in the circular-flow diagram? © Dylan receives a salary for his work as a financial analyst for an investment firm. Kristin buys two business suits to wear to her job as a Chief Information Officer. Jim receives clean water in his home in exchange for paying his water bill. 0 Caroline owns a nail salon and receives payments from her clients for her services. For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals to have a comparative advantage in both activities. have an absolute advantage in both activities. be more productive per unit of time in both activities. gain from trade with each other. The gains from trade are evident in economic models, but seldom observed in the real world. evident in the real world, but impossible to capture in economic models. a result of more efficient resource allocation than would be observed in the absence of trade. based on the principle of absolute advantage. After an increase in income, the equilibrium price of tablet computers equilibrium quantity of tablet computers and increases/decreases increases/increases decreases/decreases decreases/increases decreases/cannot be determined Which of the following would lead to a leftward shift in the demand curve for iPads (a normal good)? A decrease in household income. An increase in the price of laptop computers. An increase in household income. A decrease in in the price of the applications that run on iPads. An increase in the price of iPads. Suppose new information is available that suggest the price of gold will be higher in the future than previously expected. As a result of this new information, there is a decrease in quantity demanded and a movement along the current demand curve. there is an increase in quantity demanded an a movement along the current demand curve there is a rightward shift in the current demand curve for gold. there is a leftward shift in the current demand curve for gold.