Describe the government's flows in the circular flow model of the economy
What will be an ideal response?
The government has several flows in the circular flow model. First, the government taxes households and firms. Hence, funds flow from households and firms to the government. Second, the government transfers income back to households, via payments such as social security. In this case, funds flow from the government to households. The government also purchases goods and services from firms in the goods market. In this case, goods and services flow to the government and payments flow to firms.
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Market basket B is to the northwest of basket A but lies on the same indifference curve for a consumer. Market basket C also lies to the northwest of A but is above the indifference curve. This consumer
a. prefers C to A. b. is also indifferent between A and C. c. prefers B to A. d. prefers C to B.
To identify the product market, antitrust agencies use
A) qualitative, but not quantitative tools. B) both qualitative and quantitative tools. C) quantitative, but not qualitative tools. D) territorial restrictions
The Boy Scouts have so far sold 100 tickets for their upcoming raffle, but they sell a constant additional 12 tickets every day. After three more days of selling tickets, the stock of tickets sold will be ________, and the flow of tickets sold will be ________.
A. 100; 36 B. 136; 36 C. 36; 12 D. 136; 12
If you buy an option for a premium of $0.30/bu what is the most you can lose?
A. $0.30/bu B. The initial margin deposit plus $0.30/bu C. Your potential loss is "unlimited" D. The accumulated profit or loss as shown in the margin account.