Which of the following statements is TRUE about profits?
A) Profits are considered a cost of doing business.
B) Profits are excluded from the circular flow of the income diagram.
C) The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends.
D) Profits are considered one of the resources necessary for production.
A
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According to the circular flow of income and output, which of the following is not true?
A. Total income and total output must be equal. B. Goods and services flow in one direction and money payments flow in the other direction. C. In every economic? transaction, the seller receives exactly the same amount that the buyer spends. D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
If the demand for opera singers increases faster than the supply, wages will rise
a. True b. False Indicate whether the statement is true or false
Refer to the following graph.
This set of cost curves is:
A. wrong because the total cost and variable cost curves are reversed. B. wrong because the total cost and variable cost curves are actually the average total cost and average variable cost curves. C. wrong because the fixed cost curve is drawn incorrectly. D. correct.
The demand for markers is ________ than is the demand for Sharpies because ________.
A. more price elastic; the scope of the market is for markers is more broadly defined B. less price elastic; markers require a smaller portion of one's income C. less price elastic; the scope of the market for markers is more broadly defined D. more price elastic; markers require a smaller portion of one's income