Which of the following statements is true about the circular flow?
a) Output is greater than income
b) Income is more than expenditure
c) Output is less than expenditure
d) Output equals income equals expenditure
Answer: d) Output equals income equals expenditure
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In the circular flow model, there are two types of markets: the ________ market and the ________ market
A) goods; factor B) supply; demand C) households; firms D) producers; consumers E) service; goods
If it is not possible for a pharmaceutical drug maker to sell its generic cholesterol reducing drug along with some name brand cholesterol reducing drugs, we have an example of
A) monopoly due to ownership of key resources. B) monopoly due to governmental entry restrictions. C) monopoly due to economies of scale. D) pure competition.
One News Wire article in the text is titled "Fed Cuts Key Interest Rate Half-Point to 1 Percent." Which of the following is the Fed trying to accomplish as a result of this action?
A. A leftward shift of aggregate demand. B. A rightward shift of aggregate demand. C. A leftward shift of aggregate supply. D. A rightward shift of aggregate supply.
Which statement is true?
A. The perfect competitor generally makes a profit in the long run. B. There are many firms in a perfectly competitive industry. C. A perfect competitor will sell below market price to get a larger market share. D. A perfect competitor never makes a profit.