The inner loop of the circular-flow diagram represents the flows of inputs and outputs. Which of the following does not appear on the inner loop?
a. wages
b. land
c. capital
d. goods and services sold
a
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In the long run, increased consumption spending raises only the price level
a. True b. False Indicate whether the statement is true or false
Suppose that you have two people in an economy, Ms. Hundley and Mr. McKenna, who want to produce a public good S. Suppose we calculate the Lindahl equilibrium using the method in your textbook. In this case, the demand curve for Ms. Hundley is S = P 1/2 . The demand curve for Mr. McKenna is S = 8/P. If the marginal social cost of the project is 10, what is the Lindahl equilibrium quantity of S? What are the Lindahl prices?
What will be an ideal response?
The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. When real GDP is $15 billion, firms' inventories experience an unplanned
A) increase of $5 billion. B) decrease of $10 billion. C) increase of $4 billion. D) decrease of $1 billion. E) increase of $10 billion.
Which of the following statements is true of economic reasoning?
A) Economic reasoning hampers optimal decision making. B) Economic reasoning can only be used with normative choices. C) Economic reasoning implies that leisure time is free and costless. D) Economic reasoning helps people make the best use of scarce resources.