Total Output and Total Income in the Circular Flow Model

question 219

Multiple Choice

Total output and total income in the circular flow model

• A) are measures of the economy's level of savings.
• B) are equal to each other.
• C) include only intermediate goods.
• D) are related because national income is less than national product.

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Definitions:

Quality Products

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Possession Utility

The value added by the process of transferring the ownership of a product or service from one party to another, enhancing its appeal to potential buyers.

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The extent to which products are in stock and can be purchased by consumers at any given time.