7. In the circular flow diagram of an economy, which of the following is true? a. Businesses pay wages, rent, interest, and profits to households in return for use of factors of production. b. Businesses purchase goods and services from households in return for money payments. c. Households pay wages, rent, interest, and profits to businesses in return for use of factors of production. d. The relationship between households and businesses exists only in a traditional society. e. The relationship between households and businesses exists only in an open economy. 8. Gross domestic product: a. includes all the goods and none of the services produced in an economy in a given time period. b. measures the value of the aggregate production of goods and services in a country during a given time period. c. measures the value of labor payments generated in an economy in a given time period. d. is generally less than federal expenditure in any time period 9. Gross domestic product measure: a. The total income in the economy, but not the total expenditure on the economy's output b. The total expenditure on the country's output but not the total income in the economy c. Both the total income in the economy and the total expenditure on the economy's output d. None of the above 10. Koffi is considering going to school at IUGB for four years. The tuition is $25,000 a year, but he knows that after graduation he can earn $25,000 more than high school graduates for each subsequent year of work. If he does not go to college, he can work right away and earn $50,000 a year. What is Koffi's opportunity cost of going to IUGB for 4 years? a. $120,000 b. $45,000 c. $80,000 d. $200,000