The circular flow diagram shows that
A) the value of total income is equal to the total value of expenditures on final goods and services.
B) firms pay households wages, and households receive transfer payments from firms.
C) households spend all their income on goods and services.
D) GDP will be less than the total value of expenditures on final goods and services in the economy.
Answer: A
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Arthur Bach is worth $780 million dollars. He goes into an upscale men's store and buys 32 green sweaters, each costing $200 . If Arthur has maximized his utility from this purchase, what is the marginal utility of the thirty-third green sweater?
a. cannot tell b. greater than $200 c. less than $200 d. 0 e. $200
Which of the following is considered a discouraged worker?
A. A professional football player who is forced to play a new position. B. A professional football coach coming off a 0 win season. C. A professional football player who gets cut after the preseason schedule has been completed. D. A retired professional football player who tried to make a comeback but found no one was willing to give him a tryout, so he no longer looks for a job.
In the above figure, if the quantity is equal to 500,000 units, the deadweight loss is equal to
A) area C. B) area D + area I. C) area B + area F. D) area G + area H. E) None of the above answers is correct because the deadweight loss is equal to zero.
Refer to Figure 9-5. Without the tariff in place, the United States produces
A) 12 million pounds of coffee. B) 26 million pounds of coffee. C) 33 million pounds of coffee. D) 45 million pounds of coffee.