The circular flow of income assumes that
A) the national income accounting approach is not an adequate way to measure the economy's performance.
B) profit is not a cost of production.
C) goods and services flow in one direction and money payments flow in the other.
D) total income is the sum of the value of intermediate goods and final goods and services.
C
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A firm's long-run average cost curve is derived from a series of short-run average total cost curves
Indicate whether the statement is true or false
The administrative burden of taxation relates to the a. the disincentive for individuals and businesses to work generate income
b. individuals' cost of preparing tax returns and the government's cost of enforcing tax laws. c. the opportunity cost of social programs. d. the net interest that must be paid on the national debt.
Which of the following would lead to a change in the money measure, M1?
A) a customer purchases music downloads with a debit card B) a customer withdraws funds from her checking account to purchase a 6-month time deposit C) depositing a paycheck drawn against Bank of America into your checking account in Wells Fargo Bank D) interest payments by the Treasury on its debt
The large-number-of-sellers condition of perfect competition is met whenÂ
A. there are more sellers than buyers in the market. B. there are more than 50 firms in the industry. C. there are more than 100 firms in the industry. D. each firm is so small relative to the total market that no single firm can influence the market price.