In a simplified circular flow model with no government, in equilibrium, S = I + (X ? IM)
a. True
b. False
Indicate whether the statement is true or false
True
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Assume that when price is $20, quantity demanded is 9 units, and when price is $19, quantity demanded is 10 units. Based on this information, we can conclude that over the price range from $19 to $20, demand is price:
A) elastic. B) unit elastic. C) inelastic. D) cannot be determined.
Pete the Pizza Man produced $87,000 worth of pizzas in the past year. He paid $39,000 to employees, paid $11,000 for vegetables and other ingredients, and paid $5000 in taxes
He began the year with ingredient inventories valued at $1000, and ended the year with inventories valued at $2000. What was Pete's (and his employees') total contribution to GDP this year?
A high-wage country cannot afford free trade with a low-wage country. The high- wage country will either be undersold or its workers will be forced to accept lower living standards
a. True b. False
Andy observes that the income distribution between the richest and poorest people in the population has remained fixed for decades. He concludes that the rich stay rich and the poor stay poor. Is this a valid conclusion, or has Andy missed something?