In the circular flow model, households
A) spend earnings from resource sales on goods and services in the product market.
B) and firms spend earnings from resource sales on goods and services in the factor market.
C) sell goods and services in the input market.
D) hire resources sold by firms in the factor market.
A
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Mutual funds that offer limited shares that are not redeemable are referred to as
A) open-end. B) closed-end. C) negotiable. D) nonnegotiable.
In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals
A) always tend to act in an altruistic manner. B) always consider the impact of their actions on the welfare of others. C) are motivated by self-interest. D) are generally not concerned with economic questions.
Programs that limit the eligibility of transfer recipients to those with low income are called
a. social security programs. b. means-tested programs. c. single-parent family programs. d. social insurance programs.
Your savings account balance would be counted in which measure of money?
A. Hard money B. M2 C. M1 D. It would be counted in both M1 and M2