The simple circular flow model shows that workers and capital-owners offer their services to firms through the:
A. Product markets
B. Resource markets
C. Employment agencies
D. Government agencies
Answer: B
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Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $6 and the managers of Big Woods order 1,000 sheets of plywood, what is the total annual carrying costs of the inventory?
A) $3,500 B) $7,000 C) $3,000 D) $6,00
Assume the marginal tax rate is 12 percent for the first $40,000 of income, 28 percent for income between $40,000 and $100,000, and 30 percent for any income over $100,000. If Sarah has taxable income equal to $120,000 for the year, what is her tax bill?
A. $36,000. B. $33,600. C. $34,000. D. $27,600.
The Fed tried to reduce unemployment in the years following the recession of 2001 by:
A. reducing the growth rate of the money supply. B. increasing government spending on construction projects. C. keeping the Federal funds rate very low. D. raising the reserve requirement for banks.
Consumption spending is $22 million, planned investment spending is $7 million, actual investment spending is $7 million, government purchases are $9 million, and net export spending is $3 million. the following is not true?
What will be an ideal response?