In the circular-flow diagram,
a. taxes flow from households to firms, and transfer payments flow from firms to households.
b. income payments flow from firms to households, and sales revenue flows from households to firms.
c. resources flow from firms to households, and goods and services flow from households to firms.
d. inputs and outputs flow in the same direction as the flow of dollars, from firms to households.
b
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Refer to the above figure. Profits will be positive
A) when the price equals $1. B) when the price equals $2. C) at prices between $1 and $2. D) when the price is above $2.
A currency bailout
A. Is considered to be a dangerous move by the central banks of the strongest economies worldwide. B. Occurs when money is borrowed from an economy to increase the value of its currency. C. Is considered to be a dangerous move by the International Monetary Fund. D. Can help avoid a situation in which a weakness in one currency undermines other currencies.