The circular flow of economic activity is a model of the:
a. flow of goods, resources, payments, and expenditures between the sectors of the economy.
b. influence of government on business behavior.
c. influence of business on consumers.
d. role of unions and government in the economy.
a
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According to the classical economists, which of the following statements is false?
A) There is a direct relationship between the amount individuals save and the interest rate. B) There is a direct relationship between the amount business firms invest and the interest rate. C) As the interest rate rises, the quantity supplied of loanable funds rises. D) Interest rate flexibility will ensure that saving is equal to investment.
Which is NOT an example of an intermediate input?
A. A computer chip factory built in Arizona B. Electricity used in a school C. Toilet paper used in an office D. A new chair for a restaurant dining room