Consider the Circular Flow of Income and Expenditure in the Canadian

question 23

Multiple Choice

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

• A) Your family buys weekly groceries.
• B) Bombardier exports subway cars to Mexico.
• C) You put $500 into your TFSA tax-free savings account).
• D) The B.C. provincial government builds a new hospital.
• E) Canadian farmers sell wheat to China.

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Definitions:

Production Possibilities Curves

A graphical representation that shows the maximum number of possible units a company can produce of two products within a set of inputs.

Specialize

Concentrating on and becoming expert in a particular subject or skill.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, enabling more efficient trade.