Which of the following is an example of spending on goods and services in the circular flow model?
A) Micah purchases a new wrench for his auto repair business.
B) Chester buys a first-class ticket from Atlanta to London for his long-awaited vacation.
C) Toby buys a new lawn mower to use in his lawn care business.
D) Lily purchases a new massage table for use in her therapy center.
Answer: B
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What were some of the consequences of the large current account deficits that the U.S. ran over a long period of time that culminated in the crisis that began in 2007?
What will be an ideal response?
It will not benefit a seller to provide verifiable information to buyers about the seller's product
Indicate whether the statement is true or false
If the marginal benefit Isaac derives from the consumption of another candy bar is greater than the price of the candy bar, then: a. Isaac will not purchase any more candy bars
b. Isaac will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is less than the price. d. Isaac's total utility will diminish if he purchases the candy bar.
Governments enact policies to
a. make the distribution of income more efficient. b. make the distribution of income more equal. c. maximize the use of the welfare system. d. minimize the use of in-kind transfers.