Because Production Generates Income Which, in Turn, Generates Expenditure, It

question 140

Multiple Choice

Because production generates income which, in turn, generates expenditure, it is true that:

• A) it is not possible to charge taxes on either expenditure or income without disrupting macroeconomic equilibrium.
• B) the magnitude of government budget deficits is equal to the magnitude of trade deficits, albeit with the opposite sign.
• C) both the income and production approaches to measuring macroeconomic activity should yield the same results.
• D) corporate profits can not be larger than the income paid to households for the rental of their capital.

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Definitions:

Motivate With Rewards

is a strategy that involves the use of incentives or rewards to encourage and increase desired behaviors or performance.

Technical Task

A task that requires specialized knowledge or expertise, often related to a specific field or discipline.

General Direction

The broad, overarching path or course that an individual or organization intends to follow to achieve their goals or objectives.

Position of Influence

A role or situation where an individual has the power to affect decisions or actions of others.