Which of the following statements about the circular flow model is false?
A) Consumers earn income by selling resources they own to businesses.
B) Businesses supply goods and services to the household sector.
C) Households supply resources to the business sector.
D) Business firms buy goods and services from the household sector.
D
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When people use all the relevant data and principles of economics to forecast inflation, they are making
A) what is called a "data-based forecast." B) an always accurate forecast. C) a mistake. D) what is called a "rational expectation." E) an exaggerated forecast.
Economists disagree on whether labor taxes have a small or large deadweight loss
a. True b. False Indicate whether the statement is true or false
Economists believe that the above-normal economic growth in the United States between 1995 and 2010 was caused primarily by:
A. rising federal budget surpluses that reduced real interest rates. B. increased entrepreneurial activity, application of information technology, and global competition. C. increases in the rate of personal saving. D. expansionary monetary policy.
The implicit price paid by the government for surplus crops taken as collateral for loans to farmers is called
A. The interest rate. B. The loan rate. C. A countercyclical payment. D. A loan subsidy.