What role does money play in the circular flow model?
Answer: Money is the medium of exchange that is recognized by both consumers and producers.
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Regarding the privilege of incorporation (the right to organize an enterprise in the corporate form), all of the following are true except
(a) It gives a business firm limited liability, perpetual life and the rights of a citizen. (b) It is not provided for directly by the Constitution because, apart from state governments, the Constitution made no provisions for groups. (c) It is provided for at all levels of government—federal, state and local. (d) There is no "except"; all of the above are true.
Markets for pollution rights:
a. have never been tried in the United States. b. assign property rights to those who value them least. c. allow the government to assign property rights. d. enable those who value them most to pollute.