In the Circular-Flow Diagram,the Flow of Money Going into Each

question 143

Multiple Choice

In the circular-flow diagram,the flow of money going into each sector or market is _____ the flow of money coming out of that market or sector.

• A)equal to
• B)greater than
• C)less than
• D)unrelated to

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Definitions:

Total Variable Cost

The sum of all costs that vary with the level of output in the short run.

Average Fixed Costs

The fixed costs of production (expenses that do not change with the level of output) divided by the quantity of output produced.

Total Fixed Costs

The sum of all costs that do not change with the level of output produced by a business, such as rent, salaries, and insurance.

The Barber Shop

This term commonly refers to a place where men can get their hair cut and sometimes other grooming services, serving as a social hub in many communities.