Which of the following statements is TRUE about profits? A) Profits are considered a cost of doing business. B) Profits are excluded from the circular flow of the income diagram. C) The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends. D) […]
Date: September 2nd, 2020
Refer to the above table. Which country had the highest growth rate of real Gross Domestic Product (GDP) from 2014 to 2015? A) A B) B C) C D) D ANSWER C
Date: September 2nd, 2020
Total income is defined as A) the total amount earned by all resource owners. B) the sum of the total receipts of firms and the amount earned by households. C) the sum of the total receipts of firms less the amount of tax that must be paid. D) the total receipts of firms before taxes. […]
Date: September 2nd, 2020
Refer to the above figure. Which arrows represent items that are measured in dollar terms? A) Arrows A and B B) Arrows C and D C) Arrows A and D D) Arrows B and C ANSWER C
Date: September 2nd, 2020
By the legal definition of unemployment, a person who has quit his job to take care of his children full time is A) unemployed. B) not in the labor force. C) employed. D) in the labor force. ANSWER B
Date: September 2nd, 2020
Refer to the above figure. Which arrows represent items that are not measured in dollar terms? A) Arrows A and B B) Arrows C and D C) Arrows A and D D) Arrows B and C ANSWER D
Date: September 2nd, 2020
All of the following are incomes earned in the factor market EXCEPT A) wages. B) prices of goods and services. C) rents. D) profits. ANSWER B
Date: September 2nd, 2020
The annual cost of producing the entire output of goods and services in the economy A) includes durable goods but excludes nondurable goods. B) is total income. C) can be calculated entirely on the basis of financial transactions. D) includes financial transactions. ANSWER B
Date: September 2nd, 2020
Unemployment is a ________ concept, measuring the ________. A) stock; number of people who are not working B) stock; number of people at a point in time who are not working but who are looking for work C) flow; number of people who are first entering the labor force D) flow; number of people who […]
Date: September 2nd, 2020
Households receive their income in the circular flow diagram by A) obtaining dividends and interest payments. B) selling the use of their property. C) selling resources they own to business firms. D) selling the goods they produce at home. ANSWER C
Date: September 2nd, 2020
