According to the circular flow, the value of total output produced and total income
A. will always be different by the amount of firm profits
B. should increase by the unanticipated rate of inflation.
C. will be equal.
D. should differ by the value of intermediate goods.
Answer: C
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By the percentage of each type of business organization in the United States, rank sole proprietorships, partnerships, and corporations in terms of the number of firms, revenue, and profits
What will be an ideal response?
Double taxation of corporate earnings means
a. for individuals who get dividends on personal income, tax rates are twice as high as for wage earners. b. stockholders pay personal income taxes and corporation taxes on profits. c. stockholders don't get the plowback but still pay taxes on it. d. the corporation tax raises stock prices so individuals also pay a capital gains tax in addition to a tax on dividends.
The percentage change in the quantity of peanut butter demanded divided by the percentage change in price of jelly measures:
A. the price elasticity of demand for peanut butter. B. the price elasticity of demand for jelly. C. the cross-price elasticity of demand for peanut butter with respect to the price of jelly. D. the cross-price elasticity of demand for jelly with respect to the price of peanut butter.
If the price of output increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________.
A. up; increase B. up; decrease C. down; increase D. down; decrease