Which of the following statements is FALSE?
A) Total income is always greater than total output.
B) In the circular flow model, households sell factor services to businesses in return for factor payments.
C) Businesses sell goods and services to households who use their income to pay for them.
D) The value of total income is equal in value to total output because profit is a cost of production.
A
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The following graph depicts demand. 
The price elasticity of demand at point A is:
A. 2/5. B. 8/5. C. 5/8. D. 5/2.
Consider the following statements when answering this question;
I. The variance of the returns of an investor's portfolio can be reduced by selling assets from the portfolio, and investing the proceeds in other assets where returns are positively correlated with the portfolio's remaining assets. II. The value of complete information is always positive. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
A monopolist can charge a high price if:
a. the quantity demanded of its product is positively related to price. b. the demand for its product is relatively price-elastic. c. the demand curve for its product is negatively sloped. d. the demand for its product is relatively price-inelastic. e. there exist a large number of substitutes for its product.
If, at the world price, domestic producers are producing and selling 100 units of a good, then at the world price plus tariff it follows that
A) they will be producing and selling more than 100 units of the good. B) they will be producing and selling fewer than 100 units of the good. C) producers' surplus will be less than what it is when domestic producers produce and sell 100 units. D) consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units. E) c and d