In the circular flow diagram, firms get their ability to pay for the costs of production from the:
A. Revenues they receive for their products
B. Resources they acquire in the resource markets
C. Incomes they earn for their resources
D. Goods and services they get in the product markets
Answer: A
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In November 2008, automobile executives from Ford, GM and Chrysler testified to Congress that their firms needed a $25 billion bailout to prevent bankruptcies. The executives stated that part of the cash would be used to re-design production lines
The $25 billion is ________ and the re-designed production lines are ________. A) financial capital; physical capital B) gross investment; physical capital C) physical capital; financial capital D) net investment; gross investment
With regard to colonial land settlement and the land beyond the Appalachians,
(a) secure land titles had to come from established authority; land typically could not be claimed simply by "squatting" on it. (b) throughout most of the colonial period, authority over the land beyond the Appalachians was not easy to establish because both the English and the French laid claim to most of the Mississippi watershed. (c) the original grants of land to colonial settlers from the crown had been "from sea to sea." (d) all of the above are true.
It is more likely for tacit collusion to occur in the ________ market compared to the ________ market.
A) dog food; electric car B) electric car; fast food C) fast food; electric car D) fast food; commercial airline
According to the classical dichotomy, when the money supply doubles, which of the following also doubles?
a. the price level b. nominal wages c. nominal GDP d. All of the above are correct.