In a market economy, persons undertaking an investment project must
a. obtain approval from political authorities before the project can be undertaken.
b. either personally supply the required funds or convince other investors and financiers to do so.
c. finance the project entirely with equity capital.
d. arrange for bank financing before the project can be undertaken.
B
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The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind
A) a barter economy. B) the circular flow of income. C) a pure command economy. D) the double coincidence of wants.
Jose works at Intel. His manager tells him what work needs to be completed each month. Jose's resource, labor, is allocated with which of the following methods?
A) command B) majority rule C) force D) personal characteristics E) lottery
The basic economic problem of scarcity
A) is a problem only in developing economies. B) does not apply to the wealthy in society. C) has always existed and will continue to exist. D) will eventually disappear as technology continues to advance.
Disposable personal income is equal to personal income minus personal tax payments
Indicate whether the statement is true or false