Inflation tends to redistribute income from
A) savers to borrowers.
B) borrowers to savers.
C) homeowners to landowners.
D) parents to students.
A
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The circular flow diagram implies that if accounting is done correctly, ________
A) the flow of income must exceed the implied value of the factors of production B) the implied value of the factors of production must exceed the flow of income C) the flow of expenditure must equal the income of the households making those expenditures D) the flow of expenditure must exceed the income of the households making those expenditures
Give three reasons why the U.S. economy is more stable since 1950
What will be an ideal response?
Which one of the following is not a possible barrier to entry high enough to keep competing firms out of a monopoly industry?
A) large economies of scale that result in a natural monopoly B) The monopoly firm has control of a key resource necessary to produce a good. C) a high concentration ratio D) There are important network externalities in supplying a good or service.
Which of the following is a common argument against allowing a foreign firm to operate a business in a developing country?
a. The foreign firm may gain control over national resources. b. Foreign productive expertise may outdistance domestic labor skills. c. The foreign firm may reduce domestic competition. d. Technology may be transferred from industrial countries to the developing countries. e. The foreign firm may reduce dependency on domestic imports.