All of the following are examples of spending on goods and services in the circular flow model except
A) Giovani buys a new cell phone to replace the one he flushed down the toilet.
B) Amir buys a new humidor for his cigar shop.
C) Isabella buys the sushi plate for lunch at the Turning Japanese Sushi Bar.
D) Vijay buys a new minivan for his family's cross-country vacation.
Answer: B
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The demand for loanable funds
A) increases if wealth increases. B) increases if the expected rate of profit decreases. C) increases in an expansion and decreases in a recession. D) increases if population growth declines. E) decreases in an expansion and increases in a recession.
Which of the following statements is NOT compatible with explanations for why peak-load pricing is more profitable than charging a single price?
A) Consumer willingness to pay for the product varies a lot across different time periods. B) Marginal cost of production is much higher under peak demand. C) Marginal revenue changes a lot across different time periods. D) Marginal revenue must be the same across different time periods.
The worst recession since World War II started in which year?
A. 1957 B. 1973 C. 1981 D. 2007
Disposable income is the primary factor that influences the ______ component of aggregate demand.
a. investment b. consumption c. export d. trade deficit