Putting quarters into a Las Vegas slot machine and receiving quarters out of that machine is analogous to the circular flow model because
a. the value of the resources flowing into firms is precisely the value of the goods and services flowing out of firms
b. the value of the components of national income flowing into the firms is precisely the value of consumption and investment flowing out of the firms
c. the absolute dollar amount of the production goods going out from the firms equals the absolute dollar amount of the consumption goods that households consume
d. households gamble
e. you can then substitute the casino economy for the get-rich-quick schemes that are all too prevalent in the economy today
A
You might also like to view...
The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). If the price were zero, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $1,250.00.
If a Central Bank wished to reduce the supply of money it should:
(a) Sell government bonds and securities in the money market. (b) Raise the rate of discount (Bank rate). (c) Raise the reserve requirement ratio. (d) Do any or all of the above.
If in the short run the firm incurs zero marginal cost, then the firm will:
A. never shut down. B. shut down if the price is greater than the average variable cost. C. shut down if the price is less than the average total cost. D. shut down if the marginal cost equals the marginal revenue.
When foreign assets in the United States increase,
A. the United States residents are increasing their debt to the rest of the world. B. the United States residents are reducing their stock of assets. C. foreign residents debt to the United States residents also decrease. D. the United States residents are reducing their debt to the rest of the world.