The Figure Given Below Represents the Circular Flow of Income

question 52

Multiple Choice

The figure given below represents the circular flow of income between households, firms, financial intermediaries, and foreign countries.
Figure 4.2

-Refer to Figure 4.2. Calculate the total amount of consumption expenditure.

• A) $7,500
• B) $25,000
• C) $10,000
• D) $42,500
• E) $35,000

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Definitions:

Effort and Output

The relationship between the level of effort applied by workers and the quantity of output produced as a result.

Low Effort

Low effort refers to minimal or inadequate application of energies or resources towards achieving a task or goal, often resulting in suboptimal performance.

Fire Protection Program

A comprehensive set of practices and systems designed to minimize the impact of fires, including prevention, containment, and emergency response.

Insurer

An entity that provides insurance, offering financial protection and compensation for specified losses, damages, illness, or death in exchange for payment of premiums.