Consider the Circular Flow of Expenditure and Income in the Canadian

question 59

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:

National Income

The total money earned within a country from economic activities in a specific period, typically a year.

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Economic Rents

Earnings in excess of the minimum amount required to keep a resource in its current use, often due to scarcity or monopolistic control.

Accrue

The accumulation or increase of something over time, especially payments or benefits.