The circular flow diagram indicates that
A) households sell the services of factors of production to firms.
B) firms buy the services of factors of production from the government.
C) households sell goods and services to the government.
D) firms buy goods and services from households.
A
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If a good has a perfectly inelastic short-run supply curve, an increase in demand will: a. increase the price and quantity exchanged in the short run
b. increase the price and but leave the quantity exchanged the same in the short run. c. increase the quantity exchanged but leave the price the same in the short run. d. leave both price and quantity exchanged the same in the short run.
Refer to the diagram below. If box E represents government, box C businesses, and box A households, then flows (11) and (12) would represent:
A. Goods and services
B. Government expenditures
C. Resources
D. Net taxes