Answer the following questions true (T) or false (F)
1. In the circular flow diagram, the value of all the income in the economy is greater than the value of goods and services produced in the economy.
2. Residential investment includes spending by firms on office buildings.
3. High-income countries such as the United States spend a greater amount on services as compared to goods.
1. FALSE
2. FALSE
3. TRUE
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Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
A) a discouraged worker. B) an involuntary part-time worker. C) a marginally attached worker. D) not in the labor force. E) a job seeker.
A firm's total cost of production
a. always increases as it produces more output b. can increase or decrease as it produces more output c. increases at a decreasing rate as long as it produces more output d. is fixed in the short run, because inputs are fixed in the short run e. can be minimized by producing where the firm's demand curve crosses the horizontal axis