What does the complete diagram represent, the bottom half and the top half put together?
a. business cycle in general
b. the factor market
c. circular flow in a free market economy
d. household payments for the factors of production
Ans: c. circular flow in a free market economy
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The Sherman Act of 1890 and the Clayton Act of 1914 were Antitrust Acts whose purposes included all of the following except
(a) The maintenance of a competitive economy (b) The prevention of monopolies, combinations and other conspiracies in restraint of trade (c) The prevention of price discrimination that reduces competition (d) The prevention of labor union activity that reduces competition in the labor market
If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries), then the absolute income gap between rich and poor nations over the years will:
A. Narrow B. Widen C. Stay the same D. Reverse