Total income A) excludes profits. B) includes only wages and interest payments. C) is the yearly amount earned by owners of the nation’s resources. D) includes only wages received by workers. ANSWER C
Date: September 2nd, 2020
How do economists view profits? A) The firm’s profit equals the sum of all payments to the 5 factors of production. B) Profits are an asset the business holds. C) Profits are guaranteed as long as a firm operates ethically. D) Profits are one of the costs paid to a factor of production. ANSWER […]
Date: September 2nd, 2020
The labor force is defined as A) all individuals who are at least 16 years old and are currently employed. B) all individuals who are currently employed. C) all individuals who are at least 16 years old and are employed, looking for work or not looking for work. D) all individuals who are at least […]
Date: September 2nd, 2020
If there is unemployment and all businesses are operating at less than full capacity, then A) society is at the wrong point on the production possibilities curve. B) there are too many workers, and some people ought to leave the labor force. C) we are not experiencing a net social cost to unemployment because it […]
Date: September 2nd, 2020
The amount earned by owners of the nation’s factors of production is A) total income. B) private and government transfer payments. C) the wages and fringe benefits received by the nation’s workers. D) all profits received by businesses. ANSWER A
Date: September 2nd, 2020
In the circular flow, ________ provide the factor services. A) businesses and households B) producers C) households D) businesses ANSWER C
Date: September 2nd, 2020
The labor force includes all of the following individuals who are 16 years or older EXCEPT A) people who have never been in the labor force but have just found a job. B) people who are retired and not actively seeking work. C) the unemployed. D) the employed. ANSWER B
Date: September 2nd, 2020
The labor force participation rate includes A) only those employed but looking for a job. B) both employed workers and discouraged workers not seeking jobs. C) both employed workers and those unemployed but seeking employment. D) only those who are employed. ANSWER C
Date: September 2nd, 2020
The circular flow of income involves the idea that A) the seller of a good receives exactly the same amount as the buyer spends. B) in every economic exchange one party takes advantage of the other party. C) the seller of a good receives more than the buyer spends. D) the seller of a good […]
Date: September 2nd, 2020
The circular flow of income shows A) the dollar value of output is less than the total income. B) the dollar value of output is exactly equal to the total income. C) the dollar value of output is more than the total income because of the existence of profits. D) the dollar value of output […]
Date: September 2nd, 2020
