The Circular Flow of Income Shows That GDP Can Be

question 20

True/False

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

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Definitions:

Dividend Increase

An action taken by a company's board of directors to raise the amount paid out to shareholders in dividends.

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.

Constant Dividend

A dividend policy in which a company pays out a fixed amount of dividend per share irrespective of its financial performance.