Which of the following sets of variables represent Injections into the Circular flow of Income?
(a) Investment, imports, savings and subsidies.
(b) Savings, taxes, government expenditure and imports.
(c) Government expenditure, taxes, exports and investment.
(d) None of the above.
Answer: (d) None of the above.
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As the present value of the future earnings from owning an asset ____, the market value of the asset ____
a. decreases; increases b. increases; decreases c. decreases; decreases d. decreases; is uncertain
If a firm pays all transportation costs and it is very costly to transport the inputs, but relatively inexpensive to transport the final product, the cost-minimizing location for the plant will be closer to the ________ and farther away from the ________.
A) customers; distributors B) customers; inputs C) distributors; customers D) inputs; customers