Which of the following are separate flows in the circular flow model?
A) the flow of income received by households and the flow of tax revenues paid by households
B) the flow of income earned from the sale of resources and the flow of expenditures on goods and services.
C) the flow of goods and the flow of services
D) the flow of costs and the flow of revenue
B
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Two identical firms that share a market and produce a homogenous good will find the Bertrand Oligopoly LEAST attractive because
A) Cartels generate the highest joint profit. B) a Cournot Oligopoly will generate more profit than a Bertrand Oligopoly. C) they want to avoid a price war that leads to profit erosion and P = MC. D) All of the above.
According to the classical dichotomy, which of the following is not influenced by monetary factors?
a. real GDP. b. real wages. c. real interest rates. d. All of the above are correct.