18. Refer to the diagram. Flow 1 represents 1 Resource Market Flow Households Businesses Flow 3 Product MarketFiow 4 A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability C. goods and services. D. consumer expenditures 19. When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the A. cost effect. B. inflationary effect C. income effect. D. substitution effect. 20. Why are high rates of unemployment of concern to economists? A. Higher rates of unemployment generally lead to higher inflation rates. B. Environmental destruction is more prevalent when unemployment rates are high. C. There is lost output that could have been produced if the unemployed had been working D. All of these options are reasons why economists are concerned about high unemployment rates
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