ECO 1104 Study Guide - Ballet Shoe, Absolute Advantage, Comparative Advantage

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: A L L

Document Summary

Part i multiple choice (subtotal 45 points, one point for each question) Identify the choice that best completes the statement or answers the question. ___: lisa buys a 1982 bmw, which she plans to restore and sell. She anticipates that the cost of the car and the repairs will be ,000 and that she can sell it for ,000. When she has spent ,000, she discovers she needs to replace the engine, which will cost ,000. She can sell the car without the new engine for. In a circular-flow diagram, which flows are involved: taxes flow from households to firms, and transfer payments flow from firms to households. Income payments flow from firms to households, and sales revenue flows from households to firms: resources flow from firms to households, and goods and services flow from households to firms. Inputs and outputs flow in the same direction as the flow of dollars, from firms to households.