Exit from a market will occur if economic profits are zero
Indicate whether the statement is true or false
False
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Which of the following causes the consumption function to rotate downwards?
A) a decrease in the marginal propensity to save (MPS) B) a decrease in consumer tax rates C) a decrease in autonomous consumption D) a decrease in the marginal propensity to consume (MPC)
Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic. So, imposing a tax on the good results in ________ in the price received and kept by sellers and a ________ in the price paid by buyers
A) a rise; rise B) a rise; fall C) a fall; rise D) a fall; fall E) no change; rise
What is the difference between "capital" and "financial capital"? Which is a factor of production?
What will be an ideal response?
How does money make the circular flow model more efficient
A. Neither the product nor resource market can exist without money. B. Money gives firms an advantage over households, since they have more money. C. Money makes the product market more important than the resource market D. Having a common medium of exchange, like money, eliminates the need to barter.