The expanded circular flow model is a complex set of money, resource, and product flows in and out of households, firms, government, and foreign economies. If you account for each of the in and out flows, you can conclude that
a. investment must be zero
b. savings can be greater than investment
c. savings can be smaller than investment
d. savings must equal investment
e. savings must equal zero
D
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In the United States each year,
A. more than 50 percent of all businesses fail. B. less than 25 percent of all businesses fail. C. over 10 percent of all businesses fail. D. only about 5 percent of all businesses fail.
If the quantity of money supplied is greater than the quantity of money demanded, then the
A) price of financial assets falls. B) money supply decreases. C) nominal interest rate rises. D) nominal interest rate falls. E) price level falls.
Suppose that the price of a pound of potatoes increases from $0.75 to $0.90 . Use the midpoint formula to calculate the percentage change in price
What will be an ideal response?
The Fill-in-the-Blank State University women's basketball team plays its games in the same facility as the men's team. The seating capacity is the same for each. A profit maximizing university would
A. set ticket prices based on the quantity where MC=MR but to average that price for men and women and charge the same. B. set ticket prices based on the quantity where MC=MR so that the profit to each is maximized. C. set ticket prices based on the quantity where MC=MR for the men and give the tickets to the women's games away. D. set identical ticket prices for men's and women's teams based on what would sell out every game.