A circular flow diagram traces the flows of inputs and outputs between:
A. households and the government.
B. households and firms.
C. households in one country and households in another country.
D. firms in one country and households in another country.
Ans: B. households and firms.
Economics
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Which of the following statements is true?
A) Household production is counted in GDP as it amounts to real production. B) GDP growth distributes income equally to people in the economy. C) GDP accounting rules do not adjust for production that pollutes the economy. D) A decrease in the crime rate increases GDP as people will spend more on security.
Economics
Refer to Table 1-3. What is Santiago's marginal benefit if he decides to stay open for an extra two hours instead of one hour?
A) $40 B) $50 C) $120 D) $190
Economics