Which of the following is an example of a leakage from the circular flow of income and expenditure?
a. Investment
b. Imports
c. Government purchases
d. Exports
e. Transfer payments
b
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Prior to 1995 productivity growth in Europe was ________ in the United States
A) higher than B) lower than C) same as D) None of the above
To decrease buyer power, the firm can
a. Differentiate its product b. Decrease dependency on a single buyer c. Sell its products in locations with multiple buyers d. All of the above
The long-run average-total-cost curve connects the lowest cost for each level of output given by the short-run average-total-cost curves
a. True b. False Indicate whether the statement is true or false
What is the role of the Federal Open Market Committee (FOMC)?
(A) It makes key decisions about interest rates and the growth of the United States money supply. (B) It redraws the map of the 12 Federal Reserve Districts every ten years in response to economic changes. (C) It collects information on each Federal Reserve District and reports on economic conditions to the Board of Governors. (D) Composed of seven members appointed by the President, it oversees the Federal Reserve System.