In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?
Wages, rents, and profits. The sum of these payments equals GDP.
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When will the difference between the actual deficit and the structural deficit be the smallest?
A. In a major recession B. In a major recession C. At full employment D. In an inflationary gap
Factors of production such as labor and capital
A. are complementary. B. can be complements and also substitutes. C. are substitutable. D. can be neither complements nor substitutes.
A contingent contract can create production inefficiency; however, many principals accept this because
A) inefficiency is inevitable. B) monitoring is costless. C) risk is reduced. D) profit will increase as a result.
When a monopolist sells two units of output its total revenue is $150. When it sells three units of output its total revenue, is $180. When the monopolist sells three units of output, the price per unit is
A. $50. B. $60. C. $75. D. $90.