In the simple circular flow model, the funds received by a carmaker when it sells a car goes to
A) only the owners of the carmaker.
B) the owners of all of the resources used to make the car.
C) the workers who helped build the car.
D) the owners of firms who sold materials to the carmaker, and the rest stays with the firm.
B
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Total utility increases if one more unit of a product is purchased and marginal utility is positive.
Answer the following statement true (T) or false (F)
If Arnold has a positive rate of time preference, he desires to
a. save in case of inflation b. consume now rather than later c. invest in stocks and bonds d. invest in education e. plan for retirement
Al B. Core works at a Fresh Fish Market. The market sells fresh fish from 9 a.m. until 7 p.m. every day. The store does not sell day-old fish, so all unsold fish are thrown away at 7 p.m. each day. If Al has lots of fresh fish left at the end of the day that cost him $300 to acquire, what should Al do? a. Lower the price of the remaining fish, even if he can't recover his $300
b. Lower the price of the remaining fish, but under no circumstances should the price fall below $300 for the remaining fish. c. Throw the fish away even if he could sell some of them at a discounted price. d. Starting tomorrow, lower the price on all fish so they will all be sold by mid-day.
A decrease in the price of resources will cause the aggregate supply curve to
a. shift outward. b. shift inward. c. become flatter. d. become steeper.