II.The costs associated with recalculating prices
CQUESTIONS FROM CHAPTER 8 : DO THEM WHEN WE COMPLETE CHAPTER 8 IN CLASS64) Which of the following statements is FALSE?
B65) Which of the following statements is FALSE?A) The value of total income is equal in value to total output because profit is a cost of production.B) In the circular flow model, households sell factor services to businesses in return for factor payments.C) Businesses sell goods and services to households who use their income to pay for them.D) Total income is always greater than total output.Answer:
D66) Which of the following is consistent with the circular flow of income?I.Goods and services flow in one direction.II.Payments and incomes flow in one direction.III. Sellers receive less than what buyers spend.