Which of the following are represented by the same flow in the circular flow model?
A) the flow of goods and the flow of factors of production
B) the flow of costs and the flow of revenue
C) the flow of income earned from the sale of resources and the flow of expenditures on goods and services
D) the flow of income received by households and the flow of tax revenues paid by firms
Answer: B
You might also like to view...
Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a result
A) the price of gasoline rises to the equilibrium price. B) there is incentive for buyers to undertake search activity. C) the supply of gasoline will increase and the supply curve will shift rightward. D) the demand for gasoline will decrease and the demand curve will shift leftward.
Patrick is considering two different jobs in the same city-one as a bicycle courier, and the other as a mail room clerk. Both require equivalent training. He finds neither job very appealing, but, if they pay the same wage rate, Patrick would prefer to work as a mail room clerk. In order for Patrick to find the two jobs equally attractive, the
a. mail room job must pay a compensating wage differential b. mail room job must pay a preference premium c. courier job must pay a compensating wage differential d. courier job must involve longer working hours e. mail room job must involve longer working hours
The period of growth in real GDP between the trough of the business cycle and the next peak is called the
a. recessionary phase. b. expansionary phase. c. contractionary phase. d. cyclical phase.
Which of the following is often referred to as the basic postulate of economics?
What will be an ideal response?