Consider the Circular Flow of Expenditure and Income in the Canadian

question 6

Multiple Choice

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is a withdrawal from the circular flow?

• A)The Alberta provincial government purchases water bomber aircraft for fighting forest fires.
• B)Canadian barley is exported to the European Union.
• C)The Toronto transit authority buys subway cars from Mexico.
• D)A Toyota plant in Canada exports new vehicles to the United States.
• E)You spend your savings to pay for university tuition.

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Definitions:

Advance Premium

Payment made in advance for insurance coverage, often resulting in a discount or ensuring the policy remains active without interruption.

Workers' Compensation

An insurance scheme designed to provide medical assistance and compensate for lost wages to employees injured during their work.

General Journal

A primary accounting record where financial transactions are recorded in chronological order, before being posted to specific accounts in the general ledger.

Normal Balance

The account side (either debit or credit) that documents the account's increases, based on the type of account.