The circular flow of economic activity is a model of the:
A. flow of goods, resources, payments, and expenditures between the sectors of the economy.
B. influence of government on business behavior.
C. influence of business on consumers.
D. role of unions and government in the economy.
Answer: A
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In perfect competition, marginal revenue
A) increases as more is sold. B) decreases as more is sold. C) is equal to the market price. D) is zero. E) is always greater than marginal cost.
By human capital, economists mean
A) machines that replace humans. B) machines engineered to avoid operator injury. C) the accumulated skill and knowledge of humans. D) humans who perform repetitive tasks.
A slowdown in labor productivity causes a slowdown in economic growth when all else is held constant
Indicate whether the statement is true or false
Crowding out can best be defined as
A. private investment increases growth rates and decreases deficits. B. restrictive monetary policy raises interest rates and decreases investment. C. government deficits increase interest rates and decrease investment. D. consumption spending increases interest rates and decreases investment.