Which of the following examples illustrates the circular flow model?
a. Marie buys flour at a store and uses it to bake a cake for the manager of the store.
b. Brenda buys hand lotion and uses it to reduce the dryness of her hands.
c. Terence buys an RBD computer, and RBD uses the revenue to purchase material to
make more computers.
d. Charles buys 24 cookies at a bakery, and the bakery donates part of the money to
charity.
c. Terence buys an RBD computer, and RBD uses the revenue to purchase material to
make more computers.
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In national income accounting, grain fed to a hog at a commercial hog farm is considered a(n)
a. final good. b. intermediate good. c. consumer good. d. capital consumption allowance.
Today, __________ leads the world with more than 800 million cell phone users.
A. the United States B. China C. Japan D. Canada
Why are elected representatives far more likely to be informed about the issues on which they vote, compared to the typical citizen-voter?
A) A politician loves politics; citizens hate it. B) A politician is more patriotic than citizens. C) A politician is rationally ignorant; citizens are just plain ignorant. D) A politician's vote has a far greater probability of affecting the outcome, compared to a citizen's vote.
The practice of price discrimination is associated with pure monopoly because:
A. most monopolists sell differentiated products. B. it can be practiced whenever a firm's demand curve is downsloping. C. monopolists have the ability to control both output and price. D. monopolists usually realize economies of scale.