In the circular flow diagram, ________ supply the factors of production, and ________ goods and services
A) households; sell
B) households; buy
C) firms; sell
D) firms; buy
Answer: B
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Suppose you are accepted to all of the three business schools to which you applied. Consider all the factors that could matter when it comes to choosing a business school
a. How would you go about making an optimal decision about which school to attend? b. Suppose you have to give up a job that pays you $40,000 a year to attend business school. How would this affect your calculations of which business school to attend?
If investment is interest-insensitive,
A) monetary policy has no impact on equilibrium income. B) monetary policy has no impact on the equilibrium interest rate. C) fiscal policy has no impact on equilibrium income. D) fiscal policy has no impact on the equilibrium interest rate.
Social Security payments are indexed for inflation using the CPI. A recent newspaper editorial claimed that Social Security recipients are harmed by years of low inflation because they do not receive as large an increase in their payments as they do in years of high inflation. Which of the following statements is correct?
a. The newspaper editorial is correct under all circumstances. b. The newspaper editorial is correct if the market basket consumed by Social Security recipients is the same as the market basket used to compute the CPI. c. The newspaper editorial could be correct if the prices of the goods consumed by Social Security recipients change at a different rate than the prices of the goods in the market basket used to compute the CPI d. The newspaper editorial is incorrect under all circumstances.
A shortage of hospital beds in a hospital services market will lead to:
a. a decrease in the demand for hospital beds. b. upward pressure on the price of a hospital stay. c. a construction boom to eliminate the shortage. d. an increase in the supply of hospital beds. e. downward pressure on the price of a hospital stay.