Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (6) might represent
A. the purchase of armored personnel vehicles by government.
B. corporate income tax payments.
C. the payment of payroll taxes by households.
D. the purchase of basketballs by the Ogallala school district.
Answer: C
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Crunchy Chips is a potato chip manufacturer. To produce the chips, Crunchy Chips needs to first peel and slice the potatoes and then fry them within two minutes of slicing to prevent browning. If Crunchy Chips is unable to fry the potatoes within two minutes, it must freeze the chips and later defrost them to fry them. Which of the following is true for Crunchy Chips?
A) Crunchy Chips faces a hold-up problem. B) Crunchy Chips has production technological interdependency. C) Vertically integrating the slicing and frying process will increase production costs. D) Crunchy Chips has no production technological interdependency.
Which of the following best defines quantity supplied?
a. the amount of a good sellers would choose to produce, in a given set of circumstances b. the amount of a good sellers will be able to sell, in a given set of circumstances c. the various amounts of a good sellers would like to sell over various sets of circumstances d. the amount of a good sellers would like to sell if they could choose the price for which it sold e. the amount of a good that sellers would be able to sell if they could choose the price for which it sold
A country's financial account balance decreases if
A. foreigners increase their purchases of its existing assets. B. its current account balance increases. C. its income payment inflows on foreign assets decrease. D. its domestic residents working abroad reduce the income they send home to their families.
Incentives can be used to reduce both adverse selection and moral hazard.
Answer the following statement true (T) or false (F)