All of the following are examples of spending on factors of production in the circular flow model except
A) Bima hires two students to work at his ice-cream store.
B) "Get Fit Together" purchases 3 new treadmills for its gym.
C) Iris buys a dozen roses for her mother's birthday.
D) The Banyan Tree rents a much larger property so that it can add a restaurant to its facilities.
Answer: C
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In the long run, the effect of a reduction in the money supply is to
A) decrease both the price level and real Gross Domestic Product (GDP). B) decrease real Gross Domestic Product (GDP) only. C) decrease the price level and increase real Gross Domestic Product (GDP). D) decrease the price level only.
Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality
What did Pigou believe should be done in the case of a positive externality in consumption? How would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality?
By investing in both human capital and physical capital, Laci’s country has achieved an economic growth rate of 1.9 percent. Assuming Laci’s country can maintain this growth over time, the economy should double in approximately ______ years.
a. 133 b. 36.8 c. 3.68 d. 13.3
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
To an economic naturalist, this model helps explain why political candidates:
A. are loyal to their political parties. B. work to bring federally funded projects to their home districts. C. move toward more centrist positions during campaign season. D. take more extreme positions than are held by the general population.