The circular flow of income shows that
A) households transact only in the goods market.
B) governments purchase goods and services.
C) firms generally are the demanders in the goods markets and suppliers in the factor markets.
D) None of the above answers is correct.
B
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Which of the following is false? a. An increase in labor productivity will shift the demand curve for labor to the right
b. An increase in wage will lead to an increase in the supply of labor. c. A decrease in the nonwage income of workers would shift the labor supply curve to the right. d. If job amenities deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve.
The income of consumers increases. and the wage rate in the beef industry increases. As a result
A. the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply. B. the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply. C. the price of beef stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply. D. the price of beef increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply.
Other things equal, cost-push inflation results in output ________ and the price level ________.
A. increasing; increasing B. decreasing; decreasing C. decreasing; increasing D. increasing; decreasing
Which one of the following is an example of a financial investment but not an economic investment?
A. A renovation of a shopping mall B. An addition to a petroleum refinery C. Building a new store D. Buying gold to sell later at a higher price