Refer to Figure 23-2. If the U.S. economy is currently at point N, which of the following could cause it to move to point K?
A) Government expenditures increase. B) Firm's cash flows rise as profits rise.
C) Households expect future income to rise. D) Household wealth falls.
D
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If the current shareholders begin to believe that the prices of the stocks are likely to rise in the future, the supply curve of shares will:
a. shift to the right. b. become perfectly elastic. c. slope downward. d. shift to the left. e. become perfectly inelastic.
According to the circular-flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates
a. in the markets for factors of production exchanging labor for income. b. in the markets for factors of production exchanging flowers for revenue. c. in the markets for goods and services exchanging flowers for wages, rent, and profit. d. in the markets for goods and services exchanging labor for income.
Compared to perfect competition, in oligopoly:
a. price is normally lower. b. profits are normally lower. c. both price and profits are normally higher. d. firms act more independently.
As a percentage of government receipts, corporate income taxes are larger than personal income taxes and Social Security taxes combined.
Answer the following statement true (T) or false (F)