The circular flow diagram shows that
A) the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services.
B) goods and factor markets are independent.
C) the total amount of income generated by the economy equals the total purchases of final goods and services.
D) consumption expenditure equals saving.
Correct Answer:
Verified
Q30: In the circular flow model of an
Q31: If we compare the four sources of
Q32: The circular flow diagram indicates that
A) households
Q33: In computing GDP, it is essential to
A)
Q34: In the circular flow of economic activity
A)
Q36: In the circular flow diagram, aggregate expenditure
Q37: GDP counts only final goods and services
Q38: The circular flow of income shows that
A)
Q39: Which of the following is TRUE regarding
Q40: ![]()
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