Which of the following are separate flows in the circular flow model?
A) the flow of income received by households and the flow of tax revenues paid by households
B) the flow of income earned from the sale of resources and the flow of expenditures on goods and services.
C) the flow of goods and the flow of services
D) the flow of costs and the flow of revenue
B
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Monopolistic competition is associated with
A) product differentiation. B) price-taking behavior. C) explicit consideration at the firm level of the strategic impact of other firms' pricing decisions. D) high profit margins in the long run. E) increasing returns to scale.
The law of demand states that price and ______________ are _____________ related, ceteris paribus
A) demand; inversely B) quantity demanded; inversely C) demand; directly D) quantity demanded; directly E) ?quantity supplied; directly
Which of the following would most likely prevent economists from making accurate economic predictions?
a. lack of accurate statistics for the past 50 years b. being unsure about how firms and consumers will respond to changes in monetary policy c. lack of cooperation between the Senate and the House of Representatives d. being unsure about the accuracy of international business reports
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save when real disposable income equals $400?
A. 0.69 B. 1.45 C. -0.45 D. 0.7