In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called
a. spending.
b. revenue.
c. income.
d. wages, rent, and profit.
b
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How does a firm in monopolistic competition decide whether to operate at a loss or shut down in the short run?
What will be an ideal response?
The percentage of people living in urban areas decreased surprisingly between 1860 and 1910
Indicate whether the statement is true or false
Economies of scale means
a. average total cost rises as firm size and output increase b. average total cost falls as firm size and output increase c. small firms have a cost advantage over large firms d. monopolistically competitive firms charge less than a monopoly e. a monopoly makes more economic profit than a perfectly competitive firm
In the equilibrium for a common resource with no government regulation
a) marginal private benefit equals marginal cost b) marginal social benefit is greater than marginal cost c) marginal social benefit equals marginal cost d) marginal social benefit is greater than marginal private benefit