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Question A : The simple circular flow model shows that workers and capital owners offer their services to firms through the :
(A) Product Markets
(B) Resource Market
(C) Employment Agencies
(D) Government Agencies
Questions B: In the circular flow model, households earn their income in the :
(A) Resource Markets
(B) Product Market
(C) Capitalist Market
(D) Money Market
Question C : A increase in demand coupled with a simultaneous and bigger decrease in supply will cause equilibrium :
(A) Price to go uo and quantity to go down.
(B) Price to go up and quantity to go up.
(C) Price to go down and quantity to go down.
(D) Price to go down and quantityto go up.
It is often said that democracies will not go to war with one another. Do you think this is true? So, what impact do economic systems have on world peace? What are some strategic considerations involved in economic relationships with other countries?
Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
If the number of labor hours increases by 10% and the number of hours of capital used decreases by 10%, what is the percentage change in output?
You plan to borrow $5000 to buy a car. The bank advertises two car loan plans with different nominal interest rates (APRs) and pay-offs periods. Plan A loans the money at the effective rate interest of 12 % compounded monthly, to be repaid over the n..
How do SMERF groups complement the business travel market?
If the federal funds rate is set by the Taylor rule and the output gap increases by 5 percentage? points, everything else remaining? unchanged, the federal funds rate should? ________. If the value of a government minus−taxation multiplier is? 1.8, w..
Consider a small open economy in the short run where the government decreases the tax rate. You own a hat company which sells both domestically and abroad. Therefore your total sales are a function of the exchange rate and total domestic consumption...
Discuss the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels.
Consider a hypothetical economy without government or international trade. Households spend $0.90 of each additional dollar they earn and save the remaining $0.10. Even when they have no income, they spend $100 in total. Calculate the current equilib..
You borrowed $21,061.82 to finance the educational expenses for your senior year of college. The loan will be paid off over five years. The loan carries an interest rate of 6% per year and is to be repaid in equal annual instalments over the next fiv..
Illustrate what are the advantages and disadvantages of having monetary policy in the hands of the Federal Reserve System rather than in the legislative or executive branches.
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
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