In the circular flow, business owners receive
a. interest.
b. profits.
c. rent.
d. wages.
b. profits.
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If the sellers of a good are taxed for each unit sold, ________
A) the price that buyers need to pay falls B) a larger quantity of the good is sold C) the price that sellers receive increases D) a smaller quantity of the good is sold
The above figure gives your budget line between CDs and magazines. Which of the following changes would NOT allow you to buy more CDs?
A) a decrease in the relative price of CDs B) an increase in income C) a decrease in the price of magazines with no change in the price of CDs D) None of the above answers is correct because all of the above changes allow you to buy more CDs.
The risk that the party on the other side of a financial transaction fails to meet its obligation is called
A) credit risk. B) currency risk. C) counterparty risk. D) leverage.
Supporters of advertising claim that it:
a. increases the variety of products. b. attacks established brand loyalties. c. allows new firms to compete. d. all of these.