The circular flow of income shows
A) the dollar value of output is less than the total income.
B) the dollar value of output is exactly equal to the total income.
C) the dollar value of output is more than the total income because of the existence of profits.
D) the dollar value of output is more or less than the total income, depending on whether profits are positive or negative.
B
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Utility is:
A. maximized by rational individuals. B. revealed by observing choices an individual makes. C. the satisfaction individuals get from different bundles of goods. D. All of these are true.
If a single union supplies all the labor in a competitive labor market, the union probably will
A. increase labor supply to raise employment. B. restrict labor supply to raise wages. C. increase union membership to increase wages. D. act like a competitive firm.