In the circular flow diagram, households supply __________ to business firms.
Fill in the blank(s) with the appropriate word(s).
resources
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What is economic value of an exchange?
Assume that Nation A's production possibilities are either 30 units of bricks or 50 units of wheat. Nation B's production possibilities are 20 units of bricks and 40 units of wheat. Which of the following is true?
A. The high-cost producer of bricks is Nation A. B. Nation A is the least-cost producer of wheat. C. According to the principle of comparative advantage, Nation B should specialize in the production of bricks. D. The opportunity cost of wheat production is lower in Nation B.
Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. Refer to Scenario 9.3. Total revenue per week is
A. $3,000. B. $4,000. C. $4,500. D. $8,100.
Refer to Scenario 19.2 below to answer the question(s) that follow.SCENARIO 19.2: An individual earning $40,000 pays $3,200 in taxes. The marginal tax rate on any income earned above $40,000 is 20%.Refer to Scenario 19.2. When this person earns $60,000, her tax payment would be
A. $4,000. B. $7,200 C. $12,000. D. indeterminate from this information.