Circular flow of income - Samenvattingen, Aantekeningen en Examens
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econ 2301 Exam | 156 Questions with 100% Solutions/Verified Answers
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In terms of the circular flow diagram, households make expenditures in the _____ market and 
receive income through the _____ market. - ANSWER product; resource 
Which of the following is a positive statement? - ANSWER The temperature is 92 degrees today. 
Refer to the diagram. Flow 1 represents - ANSWER wage, rent, interest, and profit income.D 
The two basic markets shown by the simple circular flow model are - ANSWER product and 
resource. 
The four factors of production are - ANSWER land, la...
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Test Bank for Economics 4th Edition by Paul Krugman
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Test Bank for Economics 4th Edition by Paul Krugman 
 
 
1.	A simplified representation that is used to study a real situation is called a(n): 
A)	model. 
B)	production possibility frontier. 
C)	assumption. 
D)	trade-off. 
 
 
2.	The models that economists construct: 
A)	usually make simplifying assumptions. 
B)	often rely on physical constructs, such as those used by architects. 
C)	rarely use mathematical equations or graphs. 
D)	attempt to replicate the real world. 
 
 
3.	When building a mod...
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University of Cape Town School of Economics Macroeconomics ECO1011S QUESTIONS ONLY November Exam 2022/2023
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University of Cape Town 
School of Economics 
Macroeconomics 
ECO1011S 
November Exam 2022/2023 
1 
 
University of Cape Town 
School of Economics 
Macroeconomics 
ECO1011S 
 
November Exam 
 
INSTRUCTIONS 
 Only use PENCIL when filling in the MCQ answer sheet 
 Use the MCQ answer sheet provided 
 Complete the bubbles for your student number before you begin! 
 Write in your first name, surname and student number 
 If you change your mind about an answer don’t cross it out, use ...
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ECS1601 TEST BANK 2023 COMPLETE WITH ALL THE ANSWERS.
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Question 1 
 
In the goods market of the circular flow model, …. 
 
1)	firms buy factors of production from consumers 
2)	firms buy finished products from households 
3)	consumers buy factors of production from firms 
4)	firms sell factors of production to the government 
5)	consumers buy finished products from firms The correct alternative is [5]. Explanation 
In the goods market of the circular flow model, consumers receive income in the form of salaries and wages, interest, rent and profit ...
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Econ 231 - Exam 2 - Chapters 8 & 9 - Practice Problems || Questions and 100% Verified Answers.
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Which of the following changes results from a decrease in an economy's disposable income? 
 
A rightward shift of the consumption function 
An upward movement along the consumption function 
A leftward shift of the consumption function 
A downward movement along the consumption function correct answers A downward movement along the consumption function 
 
Which of the following is considered a leakage in the circular flow model? 
 
Business spending 
Total exports 
Investment spending 
Househol...
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ECS1601 TEST BANK answers 2023 verified 100%
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The correct alternative is [5]. 
Explanation: In the goods market of the circular flow model, consumers receive income in the 
form of salaries and wages, interest, rent and profit and use this income to purchase finished 
consumer goods and services. 
Question 2 
The correct alternative is [4]. 
Explanation 
A factor market is a market where factors of production such as labour, land and capital are 
traded. Therefore, in this case only the sale of land (i.e. farmland) will occur in a factor ma...
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ECS1601 ASSIGNMENT 1 FOR 2024
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Question 1 
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Question text 
Which one of the following is the main objective of macroeconomic policy? 
 
a. 
Unemployment 
 
b. 
Equitable distribution of income 
 
c. 
Price instability 
 
d. 
Sluggish economic growth 
Question 2 
Not yet answered 
Marked out of 1.00 
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Question text 
Which of the following statements is/are correct in explaining the difference between production and income? 
a) Income is the remuneration th...
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Wall Street Prep Exam:Transaction Comps Modeling Wall Street Prep Exam Questions and Answers | 100% Correct.
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Wall Street Prep Exam:Transaction Comps Modeling Wall Street Prep Exam Questions and Answers | 100% Correct. Company X's current assets increased by $40 million from while the companies current 
liabilities increased by $25 million over the same 
period. the cash impact of the change in working 
capital was 
a decrease of 15 million 
4. the final component of an earnings projection 
model is calculating interest expense. the calculation may create a circular reference because 
interest expense...
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AP Microeconomics/Macroeconomics Premium, 2025: Prep Book with 4 Practice Tests + Comprehensive Review + Online Practice (Barron's AP Prep) Premium Edition;ACE IN YOUR EXAMS!!!!
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AP Microeconomics/Macroeconomics Premium, 2025: Prep Book with 4 Practice Tests + Comprehensive Review + Online Practice (Barron's AP Prep) Premium Edition 
 
Table of Contents 
How to Use This Book 
INTRODUCTION 
1 The AP Tests in Microeconomics and Macroeconomics 
Introduction 
Microeconomics, Macroeconomics, or Both? 
The Tests: What Topics Will You See? 
Multiple-Choice Questions 
Free-Response Questions 
Practice, Practice, Practice 
Microeconomics Pretest 
Pretest AP Score Estimate 
Answe...
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UTK: BUAD 331 Exam 1 Complete (answers updated fall 2022/23.)
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UTK: BUAD 331 Exam 1 Complete (answers updated fall 2022/23.) 
 
____________ the chain facilitates better strategic alignment between supply chain operations. 
A. Breaking 
B. Sharing 
C. Bending 
D. Spreading 
 
A firm is a recognized cost leader but has a strategic goal to become a cost and service leader. What is one initiative that could be planned and implemented to achieve this goal? 
A.Increase sales calls to all existing customers. 
B.Increase capacity utilization to gain economies of ...
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