In the Circular Flow, How Are the "Value of Production

question 48

Multiple Choice

In the circular flow, how are the "value of production", "income", and "expenditures" related?

• A) They have no relationship to each other.
• B) Expenditures on GDP equal the value of production which equals income.
• C) Once tax payments are subtracted at each stage, they are equal.
• D) Once net exports of goods and services are subtracted from GDP, all three are equal.
• E) Value of production always equals income but expenditures are smaller because households save some of their income and do not spend it.

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Definitions:

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A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve lives.

Frequency Polygons

A graphical representation of the distribution of a dataset that shows the frequencies of classes via connected dots.

Variability

The measure of how spread out or scattered scores are in a distribution.

Modality

The number of peaks or modes in the distribution of data, used to describe the shape of the data distribution.