Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do all the three Thank you 18. Refer to the diagram. Flow 1 represents 1 Resource Market Flow Households Businesses Flow 3 Product MarketFiow

Please do all the three
Thank you
image text in transcribed
18. Refer to the diagram. Flow 1 represents 1 Resource Market Flow Households Businesses Flow 3 Product MarketFiow 4 A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability C. goods and services. D. consumer expenditures 19. When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the A. cost effect. B. inflationary effect C. income effect. D. substitution effect. 20. Why are high rates of unemployment of concern to economists? A. Higher rates of unemployment generally lead to higher inflation rates. B. Environmental destruction is more prevalent when unemployment rates are high. C. There is lost output that could have been produced if the unemployed had been working D. All of these options are reasons why economists are concerned about high unemployment rates

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

3rd Edition

0070967601, 978-0070967601

More Books

Students also viewed these Accounting questions