In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called
a. spending.
b. revenue.
c. income.
d. wages, rent, and profit.
d
You might also like to view...
Third-degree price discrimination occurs when:
A) different groups of consumers are charged different prices. B) consumers are charged different prices at different points of time. C) consumers are charged different prices according to their willingness to pay. D) consumers are charged different prices based on the characteristics of their purchases.
Answer the following statements true (T) or false (F)
1. Predatory pricing, such as the high price of pharmaceuticals, is legally protected under patent law. 2. If a monopolist chooses a low level of output, it can charge only a relatively low price. 3. In the real world, a monopolist can use marginal revenue and cost information to determine the profit-making combination of quantity and price because information on total revenues and costs is often not available. 4. Allocative efficiency refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. 5. One type of an imperfectly competitive market is called monopolistic competition. Monopolistically competitive markets feature a large number of competing firms, but the products that they sell are not identical.
How does a company arrange to sell its products to people who are unwilling to pay the top price for them?
a) by allowing rebates to some preferred customers who buy a lot of goods b) by charging each customer the maximum amount they are willing to pay c) by charging different prices according to the group to which the buyer belongs d) by changing the product and selling a lesser one to people who are unwilling to pay for the top product
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country B could produce are:
A. (3,600 bananas, 1,200 tomatoes) and (1,800 bananas, 1,600 tomatoes) B. (7,200 bananas, 2,400 tomatoes) and (3,600 bananas, 1,200 tomatoes) C. (1,800 bananas, 1,800 tomatoes) and (900 bananas, 2,200 tomatoes) D. (7,200 bananas, 0 tomatoes) and (4,000 bananas, 1,200 tomatoes)