What is the relationship between businesses and households in the circular flow diagram?
Please provide the best answer for the statement.
Households sell their resources to firms in return for money income. Businesses combine the households’ labor with other resources to create products. They offer these products for sale to households and in return receive revenue. These revenues to firms enable them to pay for the cost of resources from households as the cycle begins again.
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If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, we know that
A) the consumer's income is 250. B) the price of shelter is 5. C) the price of shelter is 5 times the price of food. D) All of the above.
Someone who values a lottery at more than the expected value is
a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries