An Injection into the Circular flOw Is Additional Spending on Goods

question 20

Multiple Choice

An injection into the circular flow is additional spending on goods and services that does not come from _____.

• A) spending by consumers on exports
• B) income earned by households
• C) the investments made by firms
• D) government spending

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Definitions:

Short-run Position

A period in economics where at least one input is fixed, making it a timeframe where not all production conditions can be changed.

Profit-maximizing

A strategy or point where a firm achieves the highest possible profit, given its costs and market demand.

Pure Monopolist

A single seller in a market who has the power to control market prices and output without any competition.

Unregulated Monopoly

A market structure where a single seller controls the entire market for a product or service, with no governmental restrictions in place.