Refer to the diagram. Flow 2 represents:
A. wage, rent, interest, and profit income.
B. land, labor, capital, and entrepreneurial ability.
C. goods and services.
D. consumer expenditures.
B. land, labor, capital, and entrepreneurial ability.
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The aggregate demand curve gives the
A) planned purchase rates for all goods and services in the economy at various price levels. B) demand for goods and services by the government at various price levels. C) amount of all goods everyone wants to buy at various income levels. D) planned purchases for all goods and services in the economy, holding other things such as the price level constant.
Which of the following World War I (1914–18) institutions reappeared in various forms during the Great Depression and/or World War II (1941–45)?
(a) The U.S. Grain Corporation (b) The War Industries Board (c) The United States Housing Corporation (d) All of the above
A transfer payment that rises automatically during a recession is
A) interest payments on the national debt. B) unemployment compensation. C) Social Security payments to retired persons. D) government payments to war veterans.
At what point should a firm stop hiring workers?
A. when the firm's marginal gain in output from hiring an additional worker is zero B. when the wage per worker starts to increase C. when the firm's marginal profit from hiring an additional worker equals the cost of hiring that worker D. when the firm's value of marginal product equals zero E. when the price of capital starts to decrease