Total output and total income in the circular flow model
A) are measures of the economy's level of savings.
B) include only intermediate goods.
C) are equal to each other.
D) are related because national income is less than national product.
C
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Economists refer to the ideal combination of the price a firm should charge and the quantity a firm should produce as
A) profit maximization. B) maximized production. C) perfect competition. D) optimus prime.
The income elasticity for most staple foods, such as wheat, is known to be between zero and one
a. As incomes rise over time, what will happen to the demand for wheat? b. What will happen to the quantity of wheat purchased by consumers? c. What will happen to the percentage of their budgets that consumers spend on wheat? d. All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?