Refer to the above figure. If box A represents businesses and box D represents the product market in this circular flow model, then money flow in the model would be represented by:
A. (1), (3), (6), and (8).
B. (1), (2), (3), and (4).
C. (5), (6), (7), and (8).
D. (7), (5), (4), and (2).
Answer: A
You might also like to view...
Suppose you are the manager of a plastic recycle industry. In the industry, there are 5 large recycling firms and 20 small firms. You are aware that the large firms have a marginal benefit curve from industrywide advertising that lies above the small firms' marginal benefit curve. Which of the following payment plans is least likely to create discord across the participating firms?
A) Place the large firms into Group 1 and the small firms into Group 2 and require the firms in each respective group to pay the same amount with the firms in Group 1 paying a fee that is smaller than the fee paid by Group 2 firms. B) Have each firm pay the exact same fee. C) Have each firm pay the average marginal benefit of industrywide advertising across all firms. D) Place the large firms into Group 1 and the small firms into Group 2 and require the firms in each respective group to pay the same amount with the firms in Group 1 paying a fee that is greater than the fee paid by Group 2 firms.
The government's chief forecasting gauge for business cycles is the:
a. unemployment rate. b. real GDP. c. personal income index. d. index of leading indicators.
Thinks about your own purchases. Consumer surplus
a. exists only rarely b. exists on every purchase that a consumer makes c. never exists—it's only a theoretical concept d. is received only if a good generates a utility higher than expected e. is earned on many of the purchases a consumer makes
If demand and supply have the same elasticity, the buyer will pay _____ of a tax.
Fill in the blank(s) with the appropriate word(s).