An addition of spending to the circular flow of income is
A. A surplus.
B. Household taxes.
C. An injection.
D. A leakage.
Answer: C
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Refer to Figure 2-8. What is the opportunity cost of 100 dozen roses?
A) 0.8 dozen orchids B) 5 dozen orchids C) 40 dozen orchids D) 80 dozen orchids
The difference between positive statements and normative statements is that
A) a positive statement involves a value judgment and a normative statement is a statement of fact. B) a positive statement is a statement of fact and a normative statement involves value judgments. C) value judgments are made in normative statements but assumed in positive statements. D) normative statements are provable while positive statements are not.
Market demand is the sum of the individual demands of all consumers in a market
Indicate whether the statement is true or false
Fiscal policy works principally through shifts of the aggregate demand curve.
Answer the following statement true (T) or false (F)