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Which of the Following Is True Regarding the Circular Flow

question 241

Multiple Choice

Which of the following is true regarding the circular flow diagram?
I. ʺAggregate incomeʺ is the flow of income earned by firms.
II. Retained earnings are considered income earned by firms rather than part of householdsʹ income.
III. The government, households, and firms all have transactions in the goods market.


Definitions:

Napoleonic Empire

A French empire under Napoleon Bonaparte, expanding across much of Europe in the early 19th century before its defeat.

Escaped from Elba

Refers to Napoleon Bonaparte's 1815 escape from the island of Elba, where he was exiled, leading to his brief return to power in France.

Violent Coup

An abrupt and illegal seizure of government power from the current authorities, often involving the use of force or threat of force.

Authorities

Individuals or organizations that have the legal power and right to enforce laws, command obedience, or make decisions.

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