Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?
a. a landowner leases land to a farmer
b. a farmer hires a teenager to help with harvest
c. a construction company rents trucks for its business
d. a woman buys corn for dinner
d
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For the capital stock of the economy to remain constant over time the amount of investment:
A) must exceed the depreciated value of capital stock. B) must be less than the depreciated value of capital stock. C) must be equal to the depreciated value of capital stock times the savings rate of the economy. D) must be equal to the depreciated value of capital stock.
During the Global Economic Crisis, the increase in the unemployment rate in Europe was
A) equal to that in the United States. B) less than that in the United States. C) greater than that in the United States. D) impossible to compare given that Europe did not experience crises.