Because every transaction has a buyer and a seller, firms' profits are necessarily zero in a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Because every transaction has a buyer and a seller, firms' profits are necessarily zero in a simple circular-flow diagram. GDP is more closely associated with an economy's income than it is with an economy's expenditure. the number of firms must be equal to the number of households in a simple circular-flow diagram. O every transaction contributes equally to an economy's income and to its expenditure. Because every transaction has a buyer and a seller, firms' profits are necessarily zero in a simple circular-flow diagram. GDP is more closely associated with an economy's income than it is with an economy's expenditure. the number of firms must be equal to the number of households in a simple circular-flow diagram. O every transaction contributes equally to an economy's income and to its expenditure.
Expert Answer:
Answer rating: 100% (QA)
In a simple circularflow diagram total income and total expenditures in an economy are equal ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Is demand management more closely associated with marketing or operations? Why?
-
Indicate which of the following is more closely associated with (a) Accounts receivable (b) Notes receivable: 1. Backed by a written promissory note. 2. Appears separate from receivables from...
-
Pension accounting has become more closely associated with the method of deter-mining pension benefits. Required: a. Discuss the following methods of determining pension benefits: i. Defined...
-
Suppose that there is parity between the Australian dollar and the United States dollar. Let x be a positive number and assume that the United States dollar increases by 100x % in Australian dollars....
-
For Goody Company, the budgeted cost for one unit of product is direct materials $10, direct labor $20, and manufacturing overhead 90% of direct labor cost. If 25,000 units are expected to be sold at...
-
Refer to the information in problem 37 and assume modified AGI is equal to salary income. Complete the solution to this problem considering both income and employment taxes. (Employment taxes are...
-
Explain your rights as an employee.
-
1. For the prototype user interface, design a switchboard that leads from main sections to subsections of related system tasks. The main sections may include member information, registration,...
-
Arrange the following items in proper balance sheet presentation: (Be sure to list the assets in order of their liquidity. Input all answers as positive values.) Accumulated amortization $250, 000...
-
Evaluate the function \(f(x, y)=\frac{2}{3} e^{-x / 2} \cos (y-1)\) for \(x=-0.23, y=2.7\) by: a. Using the subs command. b. Conversion into a MATLAB function.
-
Year 1 Apr. 22 Purchased $5,000 of merchandise on credit from Fox-Pro, terms n/30. May 23 Replaced the April 22 account payable to Fox-Pro with a 60-day, 15%, $4,600 note payable along with paying...
-
3. Given the following production rules in Figure 3 for simple robot commands. i) Create a a parser or derivation for the black cat crossed the road'. ii) S NP VP VP Verb Verb NPI Verb Noun NP Noun...
-
Criminalization of Exposure to HIV Infection Ethics Issue: Should people living with HIV be subject to imprisonment or other criminal penalties for: Engaging in voluntary, consensual protected sexual...
-
(9k-2)2 Simplify the given expression. Assume that all variables represent positive real numbers. Write answers with only positive exponents. 3k-6 (94-2)2 -6 3k (Simplify your answer. Use integers or...
-
Assume South Park is initially closed to trade. Domestic supply and demand for winter hats is given by the following equations: D = 60 - 4P, S = 2P - 6. a. Suppose South Park opens up to trade and...
-
Throughout the course, have learned about various concepts in international finance. This assignment provides an opportunity for you to apply those concepts and reflect on important topics in...
-
Monster Beverage Corp has a common stock that will pay a dividend of $5 per share next year. If the required return is 0.22 and the growth rate of firm is 0.03, find the common stock price today....
-
As of January 1, 2018, Room Designs, Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January...
-
The accounting records of 2Com Ltd. show the following for 2012: Balance in accounts receivable, January 1, 2012..$ 90,000 Balance in accounts receivable, December 31, 2012.120,000 Balance in...
-
Tom Mullins, a long-time client of your employer, Spinney and Smith, Chartered Accountants, approached one of the firm's partners concerning a new business opportunity. Tom is a well-established...
-
The following excerpts are taken from an article by Andrew Pollack published in The New York Titties, January 29, 2000.12 Nations Agree on Safety Rales for Biotech Food Delegates from more than 130...
-
Nancy Ferris bought a building for \($120,000.\) She paid 15 percent down and agreed to pay the balance in 20 equal annual installments. What are the equal installments if the annual interest rate is...
-
You need \($25,000\) five years from now. You budget to make equal payments at the end of every year into an account that pays an annual interest rate of 7 percent. a. What are your annual payments?...
-
Jack Ferguson has signed a three-year contract to work for a computer software company. He expects to receive a base salary of \($5,000\) a month and a bonus of \($10,000\) at year-end. All payments...
Study smarter with the SolutionInn App