Based on the circular flow model, goods and services flow from:
A. households to businesses in product markets.
B. businesses to households in product markets.
C. households to businesses in factor markets.
D. businesses to households in factor markets.
Answer: B
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If in Chicago the interest rate is 5 percent a year and in Vancouver it is 4 percent a year, ________
A) the quantity of Canadian dollars purchased will increase B) the Canadian dollar is expected to depreciate C) interest rate parity does not exist D) the U.S. dollar is expected to depreciate
Suppose that Deon places a $150 value on a new MP-3 player, and Juanita places a $140 value on it. The cost of the MP-3 player is $130 . Suppose the government levies a $15 tax on MP-3 players, which raises the price to $145 . What is the deadweight loss created by the tax?
Refer to the information provided in Table 36.3 below to answer the question(s) that follow. Table 36.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 36.3. The SUM that is calculated from all the error points from the table is equal to
A. +9. B. +11. C. +31. D. +81.
In general economic environments that correspond to lower levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. lower on the expenditure diagram. B. higher on the expenditure diagram. C. equivalent at point in the diagram. D. at multiple points on the diagram.