Entrepreneurs are unnecessary in a market economy, and their profit is unearned.

Answer the following statement true (T) or false (F)


False

Economics

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Assuming all excess reserves are loaned out, if the reserve ratio is 25 percent, the money multiplier will be equal to

A) 0.5. B) 2.5. C) 4. D) 5.

Economics

In the above figure, the rise in the price of a gallon of gasoline that created the movement from point C to point A would be shown as a movement ________ along the demand curve for ________

A) upward; coffee B) downward; coffee C) upward; gasoline D) downward; gasoline

Economics

An externality is_____

a. an unintended by-product of market exchange that is allocated outside the market system b. an intended by-product of market exchange that is allocated outside the market system c. an unintended by-product of market exchange that is allocated within the market system d. an intended by-product of market exchange that is allocated within the market system

Economics

In the circular-flow diagram, which of the following items does not flow from firms to households?

a. goods b. services c. capital d. profit

Economics