Total Output and Total Income in the Circular Flow Model

question 297

Multiple Choice

Total output and total income in the circular flow model

• A) are measures of the economy's level of savings.
• B) include only intermediate goods.
• C) are equal to each other.
• D) are related because national income is less than national product.

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Definitions:

Quotas

Predetermined targets set for sales, production, or other activities that individuals or organizations aim to achieve within a specific time frame.

Interdependence

A situation in which two or more elements or systems rely on each other to function properly, often seen in economic, social, and ecological systems.

Economic

Pertaining to the production, consumption, and transfer of wealth in a region or society.

Cultural

Pertaining to the ideas, customs, social behaviors, and characteristics of a particular society, group, place, or time.