One of the principles behind the concept of the circular flow is that
A. the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends.
B. in every economic exchange, the seller receives less than the amount that the buyer spends.
C. in every economic exchange, the seller receives exactly the same amount that the buyer spends.
D. in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends.
Answer: C
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What is the opportunity cost of going from point E to point D?
In the long run people come to expect whatever inflation rate the Fed chooses to produce, so unemployment returns to its natural rate
a. True b. False Indicate whether the statement is true or false
Monopolistic competition is an
a. efficient market structure because long-run profits are zero. b. efficient market structure because each firm produces at its efficient scale. c. inefficient market structure because there is deadweight loss. d. Both a and b are correct.
If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be
A. 2 units of outboard motors.
B. 4 units of outboard motors.
C. 12 units of outboard motors.
D. 11 units of robots.