Macroeconomics

Which of the following statements about the circular flow model is fal

Which of the following statements about the circular flow model is false? A) Consumers earn income by selling resources they own to businesses. B) Businesses supply goods and services to the household sector. C) Households supply resources to the business sector. D) Business firms buy goods and services from the household sector.   ANSWER D

Read full post

Date: September 10th, 2020

Which of the following statements is false? In the circular flow model

Which of the following statements is false? In the circular flow model: A) the funds needed to finance investment spending come from the saving of households. B) GDP can be measured either by the income received or by the expenditures made. C) factor payments are made to business firms. D) consumption expenditures are made by […]

Read full post

Date: September 10th, 2020

If electricity demand is inelastic, and electric rates increase, which

If electricity demand is inelastic, and electric rates increase, which of the following is likely to occur? A) Quantity demanded will fall by a relatively large amount. B) Quantity demanded will fall by a relatively small amount. C) Quantity demanded will rise in the short run, but fall in the long run. D) Quantity demanded […]

Read full post

Date: September 10th, 2020

Suppose the demand for meals at a medium-priced restaurant is elastic.

Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively: A) large decrease in quantity demanded. B) large decrease in demand. C) small decrease in quantity demanded. D) small decrease in demand.   ANSWER A

Read full post

Date: September 10th, 2020

The major categories of expenditures in the economy are: A) consumpti

The major categories of expenditures in the economy are: A) consumption, gross investment, and government purchases. B) consumption, net investment, and net exports. C) consumption, fixed investment, government purchases, and net imports. D) consumption, gross investment, government purchases, and net exports.   ANSWER D

Read full post

Date: September 10th, 2020