Which of the following best characterizes the circular flow of income?
a. Households buy goods and services from businesses, and businesses sell goods and services to households.
b. The government purchases resources from businesses and households and then sells goods and services to businesses and households.
c. Businesses buy resources from the government, and households buy goods and services from businesses.
d. Businesses buy resources from households, and households use their income to buy goods and services from businesses.
D
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The narrowest definition of money:
A. is referred to as hard money. B. includes the things that can be used in transactions immediately. C. contains only cash and bank reserves held at the Fed. D. All of these are true.
A straight-line Lorenz curve shows
A. an equal distribution of money income. B. a highly unequal distribution of income. C. a high incidence of absolute poverty. D. a greater than proportionate share of income going to middle-income households.
Political instability is an obstacle to development in:
A. both market and socialist economies. B. neither market nor socialist economies. C. market economies. D. socialist economies.
A worker's skills and knowledge are types of social capital.
Answer the following statement true (T) or false (F)