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Which of the following statements is incorrect?

Which of the following statements is incorrect?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1.8 Which 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 in opposite direction. d) Firms are buyers in the goods markets and sellers in factor markets, while households are buyers in factor markets and sellers in goods markets. 1.9 Consumer 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. 1.10 Which 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.
Transcribed Image Text:1.8 Which 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 in opposite direction. d) Firms are buyers in the goods markets and sellers in factor markets, while households are buyers in factor markets and sellers in goods markets. 1.9 Consumer 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. 1.10 Which 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.
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