In the circular flow, how are the "value of production," "income," and "expenditures" related?
A) They have no relationship to each other.
B) Once tax payments are subtracted at each stage, they are equal.
C) Expenditures on GDP equals the value of production which equals income.
D) Once net exports of goods and services are subtracted from GDP, all three are equal.
E) Value of production always equals income, but expenditures is smaller because households save some of their income and do not spend it.
C
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Economics
A) is a social science. B) is concerned with limited resources. C) is concerned with unlimited wants. D) All of the above are correct.
Which of the following is a leading business cycle indicator?
a. The unemployment rate. b. The volume of outstanding commercial loans. c. New building permits. d. Personal income.
The ability to produce a good at lower opportunity costs than another producer is known as
A) comparative advantage. B) marginal cost production. C) economies of scale. D) absolute advantage.
In the balance sheet for the FBN bank above, the entries are in millions of dollars.. After FBN Bank loans the maximum amount it can, the loans have been spent, and the proceeds have been deposited in other banks, FBN Bank has excess reserves of
A) $360 million. B) $280 million. C) $100 million. D) $0.