In the simple circular flow model, the funds received by a carmaker when it sells a car goes to
A. the owners of all of the resources used to make the car.
B. the owners of firms who sold materials to the carmaker, and the rest stays with the firm.
C. only the owners of the carmaker.
D. the workers who helped build the car.
Answer: A
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When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
What complex set of free-trade area regulations prohibits non member country imports to a high-tariff member country via a low-tariff member country?
a. environmental certification b. rules of origin c. health and safety standards d. a codified trade agreement
Capital goods
A. are consumed because they enhance the enjoyment consumers obtain from other goods and services. B. are a special type of consumption goods. C. are goods used to make consumer goods and services. D. refer to the expenses that a company incur for producing other types of goods.
Answer the following statement(s) true (T) or false (F)
1. If a consumer demands the same (positive) amount of a good no matter what their income, then the income elasticity is also positive. 2. Normal goods have income elasticities greater than 1, while inferior goods have income elasticities less 3. Estimates of the price elasticity of demand depend, in part, on the units used to measure price and 4. The cross elasticity of demand will be positive when goods are substitutes and negative when goods are complements.