Which one of the following statements is true in the four-sector circular model?
a. Money flows from government to households for taxes.
b. Money flows from foreign economies to households for exports.
c. Money flows from government to firms for goods and services.
d. Money flows from firms to foreign economies for exports.
e. Money flows from households to foreign economies for resources.
c
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Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?
A. Paul has the comparative in baking cakes B. Paul has the comparative in mowing the lawn C. Paul has the absolute advantage in baking cakes D. Paul has the absolute advantage in mowing the lawn.
If the exchange rate appreciates, then the
A) quantity of dollars demanded increases. B) demand for dollars decreases. C) quantity of dollars demanded decreases. D) demand for dollars increases. E) supply of dollars decreases.
The monthly mortgage payments made by a homeowner are
A) always sunk costs because the costs of constructing the house lie entirely in the past. B) marginal costs if the house is new but sunk costs if it was purchased from a previous owner. C) marginal costs of continuing to own and occupy the house. D) not marginal costs because the house will continue to exist whether or not the payments are made. E) sunk costs only if all the bills for earlier construction work have been fully paid.
The Clayton Act of 1914
A. outlawed all mergers. B. abolished the Sherman Act of 1890. C. outlawed specific business practices that discouraged competition. D. reduced the federal government's antitrust authority.