The circular flow diagram of economic activity is a model of the
a. flow of goods, services, and payments between households and firms.
b. influence of government on business behavior.
c. role of unions and government in the economy.
d. interaction among taxes, prices, and profits.
a. flow of goods, services, and payments between households and firms.
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Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion,
net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was A) $24.5 billion. B) $34.5 billion. C) $36.5 billion. D) $34 billion. E) undetermined without information about imports.
Competition keeps prices lower for consumers. So why do we have patent laws?
What will be an ideal response?
The supply of Thai baht in the foreign exchange market originates with:
a. tourists who go on vacation to Thailand. b. the export of Thailand oranges and other goods. c. Thai residents who wish to purchase goods from other countries. d. the Thai royal family. e. Thai central bank intervention to stop the peseta from depreciating.
You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. The profit-maximizing output for your firm is:
A. 6. B. 5. C. 4. D. 3.