In the circular flow model, profits are considered to be
A) a cost of doing business.
B) equal to zero, or else the circular flow would be out of balance.
C) a subtraction from the Gross Domestic Product (GDP).
D) a form of interest payment.
A
You might also like to view...
When a firm produces at the point where MR = MC, the profit that it is earning is considered to be
A) maximum. B) normal. C) above normal. D) Not enough information is provided.
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is
A) QM. B) Q0. C) Qd. D) undetermined without more information.
U.S. Gross Domestic Product includes goods produced by:
A. foreign firms on U.S. soil. B. U.S. firms on foreign soil. C. foreign firms on foreign soil. D. None of these statements is true.
Dean bakes his famous apple pies and sells them at the local farmer's market. If the price of apples increases, the
a. supply curve for Dean's pies will increase. b. supply curve for Dean's pies will decrease. c. demand curve for Dean's pies will increase. d. demand curve for Dean's pies will decrease.