In the simple circular flow model
A) businesses buy labor services from households, but supply other factors of production themselves.
B) households spend their entire income on consumer products.
C) profits are a type of income that is not received by households.
D) households spend the income they receive from labor services but save the income they receive from selling the other factors of production.
B
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The number of highly skilled and knowledge workers entering the workforce increases when
(a) firms substitute capital for high priced labor. (b) the market demands labor with advanced degrees. (c) the government cuts educational funding. (d) All of the above
Monopolies exist for each of the following reasons, EXCEPT:
a. competitors are legally unable to challenge them. b. they have control over resources with very few good substitutes. c. it is sometimes inefficient to have competition in certain markets. d. it increases both producer and consumer surplus.
When is disclosure economically desirable?
Tax incidence refers to
a. what product or service the tax is levied on. b. who bears the tax burden. c. what sector of the economy is most affected by the tax. d. the dollar value of the tax revenues.