The fact that expenditures on products and payments to owners of resources used to produce those products flow in opposite directions is known as:
A. the circular flow of income.
B. a pure economy.
C. a barter economy.
D. roundabout production.
Answer: A
You might also like to view...
If private giving to public goods involves externalities, what is a Pigouvian solution to the public goods problem?
What will be an ideal response?
Less developed countries are often characterized by imperfect capital markets. Assuming that the LCH applies to these countries and that a large proportion of the population is below fifty the
A) MPC should be relatively high. B) MPC should be relatively low. C) frequency of liquidity constraints is low. D) sensitivity of consumption to loans is low.
A financial institution that accepts deposits, makes loans, and offers checking accounts is
A) an insurance company. B) the Federal Deposit Insurance Corporation. C) the Federal Reserve System. D) a commercial bank.
Risk-averse workers
A. are willing to accept large wage decreases in exchange for a safer work environment. B. never work in risky environments. C. are willing to work in riskier environments for a relatively low increase in the wage. D. have shallow wage-risk indifference curves when risk is graphed on the x-axis. E. are more productive than risk-loving workers.