When we say that income is a flow variable we mean that a we...

When we say that income is a flow variable, we mean that A. we must attach a time period to the measure for it to make sense. B. the value is constantly changing. C. it moves through our hands quickly. D. it is measured at a given point in time.

Transcript

00:01 Hello, let me first answer the first question.

00:06 Question number 18.

00:09 Here we have four answer options.

00:12 A, b, c and d, and let's look all of them.

00:19 So the circular flow of economic activity shows how.

00:26 So businesses not only sell goods and services to households, but also they buy resources from households.

00:37 We know that companies, businesses, they also buy resources as a labor from households.

00:48 And here, this is the correct answer.

00:52 We can also look to the other answer options, like b, what seems like innovation in the design of economic policy is usually just a repeat of similar policy many years ago.

01:02 So this doesn't look good.

01:05 Obviously incorrect answer see what goes around comes around it's too it's too hypothetical theoretical statement it doesn't explain almost anything it's incorrect the all output is either recycled or becomes environmental waste it's not about ecological problems so this is not correct so if is the correct answer to the first part.

01:41 Now let's look to the second part.

01:44 Question number 18.

01:45 Again the same four answer options, a, b, c, d.

01:52 So let's look to the all answer options to the question.

01:57 The question is a cost that does not vary with the level of output in the short run but may vary in the long run is a, sunk cost.

02:12 We know that sunk cost is the cost which is not considered when we make a decision or calculate the opportunity cost...