Which of the following statements is true about a simple circular flow model?
A) Producers are buyers in the factors market.
B) Producers are neither buyers nor sellers in the product market.
C) Households are neither buyers nor sellers in the input market.
D) Households are sellers in the product market.
A
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Refer to Figure 18-1. Area B + C + F + G represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, ________, to sell bonds to investors and use the funds to purchase mortgages from banks
A) the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) B) ACORN and the Federal Housing Administration (FHA) C) Fannie Mae and Freddie Mac D) the Fed and the Treasury Department
In the above figure, when disposable income is greater than 600
A) saving is negative. B) the MPC is greater than 1. C) saving is positive. D) the MPS is negative.
If the share of population employed in two countries is the same, average living standards will be higher in the country with:
A. higher average labor productivity. B. lower average labor productivity. C. the larger population. D. the smaller population.