Which of the following is an example of an injection into the circular flow of income and expenditure?
a. Net taxes
b. Saving
c. Transfer payments
d. Government borrowing
e. Disposable income
c
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The addition of government to the circular-flow model illustrates that government
A. purchases goods in the product market. B. provides services to businesses and households. C. purchases resources in the resource market. D. does all of these.
"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?
What will be an ideal response?
The earnings of which of the following resources comprises entirely of economic rent?
a. Unskilled labor b. Coal c. Timber d. Water e. Biomass
When the supply of money rises, interest rates _____.
Fill in the blank(s) with the appropriate word(s).