In the circular-flow diagram, which of the following items represents a payment for a factor of production?
a. interest
b. capital
c. spending by households on goods
d. spending by households on services
Answer: a. interest
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The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0Which of the turning points are peaks?
A. (A), (B), and (C) B. (A), (C), and (E) C. (B) and (D) D. (C), (D), and (E)
Economic growth is slow or absent in some economies because those lack
A) political freedom. B) democracy. C) a strong government. D) cultural freedom. E) economic freedom.
Refer to the scenario above. If Maria's opportunity cost of time increases to $80 per hour, the cost involved in taking the train is:
A) $320. B) $720. C) $800. D) $970.
Consider the PPF for office buildings and housing shown in the figure above. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both?
A) point F B) point G C) point H D) point I