In the Circular Flow of Economic Activity

question 5

Multiple Choice

In the circular flow of economic activity,

• A)aggregate income measures the dollar value of labour resources only.
• B)aggregate expenditure measures the dollar value of purchases of factors.
• C)aggregate expenditure is measured as it moves through the financial markets.
• D)aggregate expenditure measures the dollar value of purchases of final goods and services.

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Definitions:

Appraisal Costs

Costs associated with measuring, evaluating, or auditing products or services to ensure they meet quality standards.

Throughput Time

The complete duration needed to create a product, starting from the commencement of its production until it's finished.

Manufacturing Cycle Efficiency

A metric that evaluates the efficiency of a manufacturing process by comparing the value-added time to the total production time.

Queue Time

The duration that an item spends waiting to be processed or serviced in a system.