The Circular Flow Diagram Shows That

question 79

Multiple Choice

The circular flow diagram shows that

• A)the total amount of income generated by the economy equals the total purchases of final goods and services.
• B)consumption expenditure equals saving.
• C)goods and factor markets are independent.
• D)the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services.

Compare the effectiveness of different coping strategies in various contexts.

Grasp the significance of cross-cultural differences in preferred coping strategies.

Recognize the relevance of health psychology in addressing behavioral control over health and illness.

Understand the stages of behavioural change in the context of health psychology.

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Definitions:

Infant Industry

A new or emerging industry that may be protected by the government from international competition to allow it to grow and establish itself.

Foreign Competition

The competitive pressure that domestic companies face from the products and services offered by foreign firms in the same market.

General Agreement on Tariffs and Trade

An international trade treaty aimed at reducing customs tariffs and other trade barriers to foster global economic trade.

GATT

GATT, or the General Agreement on Tariffs and Trade, was a legal agreement created in 1947 to minimize barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations.