Answer the following statements true (T) or false (F)
1. The circular flow of income does not take into consideration nonprofit institutions.
2. The total payment of resource income in the economy is equal to the value or cost (including profit) of the output.
3. GDP is not only the value of total output, but it also indicates the total spending of consumers, businesses, governments, and international traders on these goods and services.
4. The circular flow represents the total level of output and income.
5. In the circular flow, services rendered by the resource owners are compensated through payments of wages, rent, interest, and profits.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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The AD Curve ________
A) demonstrates how central banks respond to changes in interest rates by changing the inflation rate B) shows how changes in equilibrium output affect the inflation rate C) explains long run fluctuations in output and inflation D) all of the above E) none of the above
According to Walton and Rockoff, all of the following were among Jefferson's main goals for land policy except:
a. To assure clear property rights to the land owned by individuals. b. To drive Indians off the land and secure it for American settlers. c. To provide revenues to the federal government through sales. d. To spread democratic institutions.
Which of the following is the best example of a change in the seller’s input prices?
a. The amount of sales tax increases. b. The fees charged by a law firm increase. c. The cost of factory labor increases. d. The price of sandwiches increases.
In a graph showing the short-run cost curves, the one curve which declines continuously as we expand output is called
A) the average fixed cost curve. B) the average variable cost curve. C) the average total cost curve. D) the marginal cost curve.