According to the circular flow model, expenditures by one person translate:
A. directly into income for someone else.
B. indirectly into the value of that person's time.
C. indirectly into the household's budget.
D. directly into his or her income.
Answer: A
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Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold
A) the marginal benefit of each of the 10,000 units of iced tea equals $3. B) marginal benefit is less than marginal cost. C) the deadweight loss is equal to economic surplus. D) producer surplus equals consumer surplus.
An example of structural unemployment is a(n):
a. textile worker who quits one job and waits for the new job to begin. b. engineer permanently laid off due to advances in technology. c. computer programmer who becomes rich and leaves the labor force. d. All of these.
There is no cost of using your own savings in your business
a. True b. False Indicate whether the statement is true or false
When the economy has substantial additional saving, deficit spending will have a large "crowding out" effect
a. True b. False Indicate whether the statement is true or false