What does the circular flow model show?
(A) What inputs are required for what outputs.
(B) How many firms can support the needs of how many households.
(C) How profits are made.
(D) The interactions between households and businesses in the free market.
Ans: (D) The interactions between households and businesses in the free market.
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Which form of business organization is the most common in the United States?
a. sole proprietorship b. partnership c. corporation d. nonprofit organization e. S-corporation
If a town has a monopsony, this means:
a. there is only one employer. b. price discrimination takes place. c. goods are priced too high. d. no unions can exist. e. excess profits are being made
An increase in the taxes paid by consumers shifts the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
Capitalism is based on all of the following except
A. the "invisible hand". B. the price mechanism. C. trust. D. equity.