When an innovation spreads among producers, the earlier adopters enjoy longer-lived streams of profit before the market reaches its new long-run equilibrium

In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?

a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit

Among its duties, the Federal Reserve ________.

A. collects taxes from the commercial banks B. is responsible for regulating and supervising the banks C. uses loans from the commercial banks to increase the money supply D. provides deposit insurance for commercial bank customers