The circular flow is used to make the point that:
A. rising prices never occur during times of unemployment.
B. unemployment only occurs during a recession.
C. production generates income.
D. households purchase factors of production from firms.
Answer: C
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Will scarce goods necessarily be rationed in some manner?
A) Not if people agree to share them equitably B) Not if there is enough for everyone to have what they need C) Not if their prices are free to rise D) Not if they are privately owned E) Yes
Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. Which of the following factors of demand caused the change in Darren's behavior?
A. Income B. Price C. Preferences D. Number of buyers
Which of the following cities does not have a Federal Reserve Bank?
a. Dallas b. Kansas City c. Los Angeles d. Cleveland e. Miami
In analyzing land rent, David Ricardo constructed a model based on
A) perfectly elastic demand for land. B) a perfectly elastic supply of land. C) land being available in infinite quantities. D) the supply of land being perfectly inelastic.