Which of the Following Statements Is False? in the Circular

question 14

Multiple Choice

Which of the following statements is false? In the circular flow model:

• A)the funds needed to finance investment spending come from the saving of households.
• B)GDP can be measured either by the income received or by the expenditures made.
• C)factor payments are made to business firms.
• D)consumption expenditures are made by households.

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Definitions:

Price Of Inputs

The cost associated with acquiring the raw materials or factors used in the production of goods and services.

Number Of Consumers

The total count of individuals or entities that purchase or are potential purchasers of goods and services in a given market.

Surplus

The situation that occurs when the quantity supplied of a good exceeds the quantity demanded at a given price.

Market For Candy

A consumer market segment dealing with the buying and selling of various types of candies.