In the circular flow model, households earn their incomes in the:
A. Resource markets
B. Product markets
C. Capitalist markets
D. Money markets
Answer: A
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The opportunity cost of economic growth is
A) future consumption that a nation gets if it gives up some present consumption. B) future consumption that a nation gives up to consume more today. C) present consumption that a nation gives up to accumulate capital. D) present investment that a nation gives up to increase its economic growth.
Suppose you purchase a call option to buy IBM common stock at $35 per share in September. The current price of IBM is 37 and the option premium is 4
What is the intrinsic value of the option? As the expiration date on the option approaches, what will happen to the size of the option premium?
The change in cost resulting from producing one additional unit of output is
a. average total cost b. total variable cost c. average variable cost d. marginal cost e. total cost
An increase in aggregate demand with no adjustment in monetary policy will result in:
A. no change in inflation. B. no change in potential output but higher inflation. C. an increase in potential output and higher inflation. D. a decrease in potential output and higher inflation.