The circular flow model shows the relationships between
A. government and business firms.
B. government and households.
C. households and business firms.
C. households and business firms.
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If the MSB/MCA graph indicates that an emissions fee of $10 per unit would lead to the optimum level of emissions, but the government set a fee of $5 per unit, emissions would
A) not be reduced at all. B) not occur at all. C) be above the optimum level, but curtailed somewhat from what they would have been with no fee at all. D) be above the optimum level by 50%. E) be below the optimum level by 50%.
If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
a. MC = MR > ATC. b. MC = MR < ATC. c. MC = ATC > MR. d. MC = MR = ATC. e. this situation is not possible.
A reserve requirement of 25 percent would mean that each dollar of reserves could support ____ of demand deposits
a. $0.25 b. $0.75 c. $1.33 d. $4.00
A barter economy occurs where
A) Excludes financial markets. B) Households pay for services provided by labor with goods and services. C) Businesses provide services to households in exchange for goods and services. D) All of the above.