In a constant-cost industry, inputs prices do not change with changes in output.
Answer the following statement true (T) or false (F)
True
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From the highest percentage to the lowest percentage, the percentage of revenues earned by businesses in the United States is represented by which of the following?
A) corporations, partnerships, sole proprietorships B) partnerships, corporations, sole proprietorships C) sole proprietorships, partnerships, corporations D) corporations, sole proprietorships, partnerships
If the Fed buys $2 billion of short-term securities issued by the government of Japan and pays for them by writing a check for $2 billion,
A) its assets will rise by $2 billion and the monetary base will rise by $2 billion. B) its assets will fall by $2 billion and the monetary base will fall by $2 billion. C) its assets will rise by $2 billion and the monetary base will fall by $2 billion. D) its assets will fall by $2 billion and the monetary base will rise by $2 billion.
Which of the following is a leakages from the circular flow?
a. Household saving and government spending b. Business investment and household saving c. Net taxes and household saving d. Government spending and business investment e. Net taxes and government spending
Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the amount of money John should save would be:
A. $8,000. B. $10,000. C. $12,000. D. $40,000.