According to the circular flow, the dollar value of a nation’s output is equal to A) wages. B) profits. C) net income minus taxes. D) total income. ANSWER D
Date: September 2nd, 2020
In the circular flow model, profits are considered to be A) a cost of doing business. B) equal to zero, or else the circular flow would be out of balance. C) a subtraction from the Gross Domestic Product (GDP). D) a form of interest payment. ANSWER A
Date: September 2nd, 2020
In the United States, the labor-force participation rate since 1960 has been A) increasing for females. B) unchanged for both males and females. C) declining for females. D) declining for both males and females. ANSWER A
Date: September 2nd, 2020
Economists consider profit to be A) a cost of producing goods and services. B) something that should be eliminated by antitrust laws. C) the same as a salary. D) a reward for incurring losses. ANSWER A
Date: September 2nd, 2020
If a person is laid off from a job, he is considered by the Bureau of Labor Statistics to be a A) job leaver. B) reentrant. C) job loser. D) new entrant. ANSWER C
Date: September 2nd, 2020
In the factor market, households A) sell resources. B) are both buyers and sellers of resources. C) are neither buyers nor sellers of resources. D) buy resources. ANSWER A
Date: September 2nd, 2020
Suppose an individual buys a new CD of her favorite musical artist. This purchase has taken place in the A) labor markets. B) factor markets. C) resource markets. D) product markets. ANSWER D
Date: September 2nd, 2020
In the product markets, households A) are neither buyers nor sellers in the market. B) are the buyers of goods and services. C) are the sellers of resources. D) none of the above is correct. ANSWER B
Date: September 2nd, 2020
Which of the following would most likely be sold in the product markets? A) iron ore B) entrepreneurial ability C) a new car D) stocks and bonds ANSWER C
Date: September 2nd, 2020
The value of total output and total income in the simple circular flow model A) include only intermediate goods. B) are equal to each other. C) are measures of the economy’s level of savings. D) are related in the sense that national income is less than national product. ANSWER B
Date: September 2nd, 2020
