In the circular flow model, which of the following owns the factors of production?
A) only federal, state, and local governments
B) only households
C) only firms
D) both firms and households
E) firms, households, and all levels of government
B
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The causes of prosperity that link high levels of prosperity to high levels of inputs of production, without explaining why the levels of those inputs are high, are referred to as:
A) fundamental causes of prosperity. B) implicit causes of prosperity. C) proximate causes of prosperity. D) explicit causes of prosperity.
Which of the following is NOT a monetary policy goal?
A) keeping long-term interest rates moderate B) maintaining stable prices C) keeping a high exchange rate for the dollar D) promoting maximum employment E) All of the above are monetary policy goals.
Mutual savings banks are owned by
A) shareholders. B) partners. C) depositors. D) foreign investors.
Alpha Corporation has a price of $5 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a price-earnings ratio which is
a. high, perhaps indicating that people expect future earnings to rise. b. high, perhaps indicating that people expect future earnings to fall. c. low, perhaps indicating that people expect future earnings to rise. d. low, perhaps indicating that people expect future earnings to fall.