Accumulating capital
a. requires that society sacrifice consumption goods in the present.
b. allows society to consume more in the present.
c. decreases saving rates.
d. involves no tradeoffs.
a
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Which of the following is consistent with the circular flow of income?
I. Goods and services flow in one direction. II. Payments and incomes flow in one direction. III. Sellers receive less than what buyers spend. A) I only B) II only C) III only D) Both I and II
If the target exchange rate is 100 yen per dollar and the current exchange rate is 90 yen per dollar, the Fed will
A) sell dollars and the demand for dollars will increase. B) sell dollars and the demand for dollars will decrease. C) buy dollars and the demand for dollars will increase. D) buy dollars and the demand for dollars will decrease.
The government's role in limiting smoking in many buildings is justified by considerations of
A. Market power. B. Government failure. C. Externalities. D. Inequity.
Refer to the above figure. If box A represents businesses and box B represents the resource market in this circular flow model, then the real flow of goods, services, and economic resources would be represented by flows:
A. (5), (6), (7), and (8). B. (7), (5), (4), and (2). C. (1), (2), (3), and (4). D. (1), (3), (6), and (8).