Which of the Following Is True of Leakages and Injections

question 14

Multiple Choice

Which of the following is true of leakages and injections in the circular flow model?

• A)Leakages minus injections equal gross domestic product (GDP).
• B)Injections minus leakages equal gross domestic product (GDP).
• C)Leakages minus injections equal zero in equilibrium.
• D)Leakages must be less than injections for an economy to be in equilibrium.
• E)Leakages must be greater than injections for an economy to be growing.

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Definitions:

Economic Equality

A state in which individuals or groups within a society have similar economic conditions, including access to resources, opportunities, and outcomes.

Income Inequality

The unequal distribution of income and wealth across individuals or groups within a society, often measured using tools like the Gini coefficient.

Monopoly Power

The ability of a monopoly (a single seller in the market) to control market prices for its product or service, often resulting in higher prices and lower output than in competitive markets.

Public Education

Public education refers to the schooling system that is financed and operated by government agencies to provide free education to all students.