Which of the following is an example of spending on factors of production in the circular flow model?
A) The Lucky Ducky casino buys a new craps table for the casino floor.
B) Laurence rents a car to drive to a wedding in San Diego.
C) Yvette pays 50 to join a softball league.
D) Tuan purchases a cappuccino at the student union.
Question 2
Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. The market price falls to 24. What area represents domestic producer surplus?
A) T + U B) V + W + X + Y C) W + X + Y D) V