The circular flow of economic activity is a model of the:
a. flow of goods, resources, payments, and expenditures between the sectors of the economy.
b. influence of government on business behavior.
c. influence of business on consumers.
d. role of unions and government in the economy.
a
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Explain the differences between inclusive and extractive economic institutions
What will be an ideal response?
Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?
A) Supply decreases, a deadweight loss is created, and the price rises. B) The market becomes less efficient and the government collects the tax revenue. C) Demand does not change, the price rises, and consumer surplus decreases. D) Demand decreases, the market becomes more efficient, and the price rises.
A budget deficit occurs when government expenditures are greater than tax revenues.
Answer the following statement true (T) or false (F)
Consider a market that is in equilibrium. If it experiences both an increase in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both fall. B. price and quantity will both rise. C. price will definitely rise, while the equilibrium quantity cannot be predicted. D. quantity will definitely rise, while the equilibrium price cannot be predicted.