Based on the circular flow model, money flows from households to businesses in:
a. both factor and product markets.
b. product markets.
c. factor markets.
d. neither factor nor product markets.
b
You might also like to view...
The Phillips Curve shows the trade-off between:
a. unemployment and output. b. inflation and output. c. unemployment and inflation. d. imports and exports. e. unemployment and imports.
Several political leaders have proposed that parents be granted a substantially larger reduction in their annual personal income taxes for each child that they raise. The economic way of thinking indicates that legislation of this type would: a. make it more expensive for parents to provide for their children
b. reduce the value of children to their parents and therefore lead to a reduction in the birth rate. c. reduce the after-tax cost of raising children and therefore increase the birth rate. d. exert no impact on either the cost of raising children or the birth rate since parenting children is a non-economic activity.
A gold standard pegs the currency to:
A) another nation that also adopts a gold standard. B) a basket of metals: gold, silver, platinum, and palladium. C) the price of gold in local currency. D) the U.S. dollar.
An economic principle that explains why people pursue different occupations is
A) absolute advantage. B) international trade. C) comparative advantage. D) NAFTA.