In the four-sector circular flow model, households will use their incomes to do all but which one of the following?
a. Save.
b. Pay taxes.
c. Buy domestic goods and services.
d. Buy imported goods and services.
e. Invest.
e
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Which of the following statements is true?
A. Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie. B. Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink. C. Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth. D. a and c E. b and c
Which of the following is an example of arbitrage?
A. Thomas buys a new stock issued by a firm on the stock exchange. B. Romi buys a DVD from Walmart at $10 and sells it on eBay for $20. C. A firm sells a box of cereal at $10 when the average cost of producing it is $6. D. A local salon charges 5 percent more for all its services than a competing salon in the same locality.