Suppose we insert $1 in the circular flow economy. If the $1 moves around in the same direction, which answer represents a possible sequence of items purchased or rented?
a. land, labor, capital, entrepreneurship
b. land, services, labor, capital
c. goods, labor, services, capital
d. goods, labor, capital, services
e. labor, capital, labor, rent
C
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The opportunity cost to the consumer of purchasing and consuming one more unit of a good is called the marginal benefit
Indicate whether the statement is true or false
Long-run average cost is defined as:
A) the minimum average cost of producing any level of output when all inputs are variable. B) the minimum average cost of producing any level of output when the amount of capital is varied and all other inputs are held constant. C) the average of the short-run costs associated with each amount of capital employed by the firm. D) the minimum average cost of producing any level of output when all inputs are fixed.
Benefits today cannot be directly compared with costs in the future because:
A. money today is worth more than money in the future. B. people do not have perfect willpower and will waste money today. C. investments aren’t always profitable. D. more information is needed to make investment decisions than is typically available.
Two variables that systematically change together are correlated
a. True b. False Indicate whether the statement is true or false