Circular flow model - Study guides, Class notes & Summaries

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...

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...

LBO Modeling Exam Wallstreet Prep Questions With Answers Latest Updated 2024/2025 (Graded A+) What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWER>>>Extraordinary gains/losses what is false about depreciation and amortization - ANSWER>>>D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period....

GDP is officially measured by adding together the... correct answers ...market value of all final goods and services produced within the borders of a nation Which of the following items is included in the calculation of GDP? correct answers None (not purchase of apple stock, purchase of used car, value of homemakers services, or sale of gulf war military surplus) Which of the following expenditures would not be included in GDP? correct answers Purchase of silver cup previously sold new in...

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 ...

Wall Street Prep Exam Questions With Correct Answers Latest Update 2024/2025 (GRADED 100%) what is false about depreciation and amortization D&A may be classified within interest expense 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 the final component of an earnings projection model is calculating interest expense....

Mass Communication - A single source (usually a complex entity such as a television network) reaching thousands or millions of people with the same institutionalized message. The audience members are often heterogeneous, or demographically diverse, and typically are unknown to the message source. Model - A pictorial means of explicating, or facilitating the understanding of, an abstract process such as communication. Benefits of models - Organize, explain, and predict. Two categories of m...

Wall Street Prep Exam Questions With 100% Correct Answers Latest 2024/2025 (GRADED A+) What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? Extraordinary gains/losses what is false about depreciation and amortization D&A may be classified within interest expense 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 capi...

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...

Scarcity correct answers Limited quantities of resources to meet unlimited wants Resources as inputs to production correct answers Labor - wages Capital equipment - interest Natural Resources - rent Entrepreneurial Ability - profit circular flow model correct answers A model that shows the flow of goods and services and the interaction among households, businesses, and banks Rational Self-interest correct answers each individual tries to maximize the expected benefit achieved with a ...