In the circular flow model, households derive income from all of the following categories except
a. wages earned by labor
b. revenue earned by firms
c. profit earned by entrepreneurs
d. rent earned by people providing land resources
e. interest earned by people providing capital resources
B
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The above figure shows the short-run production function for Albert's Pretzels. The average product of labor
A) increases first and then decreases. B) decreases first and then increases. C) decreases throughout. D) increases throughout.
An example of moral hazard is
a. people drive less carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players avoid 'spearing' with their heads even with safer helmets d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
When considering the impact of institutions and policies on economic performance, it is most important to focus on
a. long-term economic growth. b. short-term economic growth. c. business cycle fluctuations. d. the labor force participation rate of married women.
QN=61 (17780) In 2007, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes corn flakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2007, with sales to households during the year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company's inventory at the end of 2007. The transactions just described contribute how much to GDP for 2007?
a. $4.5 million b. $6 million c. $6.5 million d. $8 million