In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?
A) finished goods and services
B) wages, rent, interest, and profit
C) interests payments of Federal, state, and local governments
D) firm's profit incentives
E) the goods market
B
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An increase in currency in circulation would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.
If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index falls, and real GDP falls. b. Price index falls and the change in real GDP is uncertain. c. Price index is uncertain, and real GDP rises. d. Price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.
The term "factor market" applies to the market for
a. labor. b. capital. c. land. d. All of the above are correct.
If a bottle of soda and bottled juice are substitutes, when the price of soda rises
A) demand for bottled juice rises. B) demand for bottled juice falls. C) quantity of bottled juice demanded falls. D) quantity of bottled juice demanded rises.