In the simple circular flow model
A. households spend the income they receive from labor services but save the income they receive from selling the other factors of production.
B. profits are a type of income that is not received by households.
C. businesses buy labor services from households, but supply other factors of production themselves.
D. households spend their entire income on consumer products.
Answer: D
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A decrease in the number of workers hired by a firm could result from
A. a decrease in the real wage. B. an increase in the real wage. C. an increase in the marginal revenue product of labor. D. an increase in the marginal product of labor.
In a market economy, the allocation of the quantity supplied of any good among demanders is determined by
a. the needs of the individuals. b. the sellers. c. the market price. d. government regulations. e. a random process.
Exhibit 8-2 Demand and cost information for a monopoly Q P TC 0 40 10 1 30 15 2 20 25 3 10 40 4 0 60 The marginal revenue of the second unit of output in Exhibit 8-2 is:
A. 10. B. 20. C. 30. D. 40.
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:
A. $10 and 60 units. B. $8 and 60 units. C. $7 and 50 units. D. $9 and 50 units.