Please answer all questions 1.8Which of the following statements is incorrect?a) The three major flows in the economy are total production, total income and total spending.b) There are two sets of markets in a simple economy: goods and services markets and factor markets.c) In the simple circular flow of economic activity, real" flows of goods and factors, and financial flows, move inopposite direction.d) Firms are buyers in the goods markets and sellers in factor markets, while households are buyers in factor marketsand sellers in goods markets.1.9Consumer surplus indicates that...a) more will be demanded at lower prices than at a higher prices.b) it is impossible to increase consumer well-being by changing the way in which income is spent.c) consumers often get more value from a good than is represented by the price they pay for that good.d) the allocation of resources is decided by the interaction of buyers and sellers.1.10Which of the following may result in a decrease in the demand for frozen vegetables?a) A rise in incomes of consumers who consume frozen vegetables.b) An increase in the price of frozen vegetables.c) A decrease in the price of freezers.d) A decrease in the price of fresh vegetables.

Ans. 1.8 The Circular flow model is referred to as a model that shows how money moves through…

Answered: Which of the following statements is…

Business

Economics

Which of the following statements is incorrect?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 9PA

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QUESTION TWOSuppose that the economy of Mwaliteta Republic has the following data for some economic variables. Assume that Mwaliteta Republic has a population of 500,000 people.Variable Amount in million ZMWExpenditure on Non-durable goods 98Non-residential fixed investment 79Central government expenditure 60Local government expenditure 82Expenditure on durable goods 82Expenditure on services 99Export expenditure 60Inventory Investment 5Depreciation 4Property income from abroad 12Indirect taxes 12Residential fixed investment 42Personal income tax…
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