In the simple circular flow model, the funds received by a carmaker when it sells a car goes to
A. the owners of all of the resources used to make the car.
B. the owners of firms who sold materials to the carmaker, and the rest stays with the firm.
C. only the owners of the carmaker.
D. the workers who helped build the car.
Answer: A
You might also like to view...
In January 2001, the euro/dollar exchange rate was 1.10, and in January 2002, the euro/dollar exchange rate was 1.120 What happened to the exchange rate during this period?
A) Euro appreciated against the dollar. B) Euro depreciated against the dollar. C) Dollar appreciated against the euro. D) Both B and C.
Most economists use the aggregate demand and aggregate supply model primarily to analyze
a. short-run fluctuations in the economy. b. the effects of macroeconomic policy on the prices of individual goods. c. the long-run effects of international trade policies. d. productivity and economic growth.