The circular flow model:
a. Illustrates the interdependence of businesses and consumers
b. Assumes that central planning is taking place
c. Illustrates how natural resources are created
d. Illustrates how money is created by the banking system
Answer: a. Illustrates the interdependence of businesses and consumers
You might also like to view...
A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15
What will happen to the number of firms in the industry and to the industry's output in the long run? A) The number of firms remains constant and the industry's output decreases. B) The number of firms and the industry's output increase. C) The number of firms remains constant and the industry's output increases. D) The number of firms and the industry's output decrease.
In the U.S. balance of payments, purchases of foreign assets by U.S. residents are tabulated as a:
a. unilateral transfer. b. capital outflow. c. current account outflow. d. capital inflow.
Which of the following is usually estimated to be between 4.5 and 5 percent?
a. the labor force participation rate b. the natural rate of unemployment c. the rate of frictional unemployment d. the rate of seasonal unemployment
What was the official poverty level for a person living alone in 2012?
a. 10,900 b. 11,170 c. 18,850 d. 23,050