Which of the Following Is True of the Circular Flow

question 18

Multiple Choice

Which of the following is true of the circular flow model for the private sector?

• A) Total output is equal to government spending.
• B) Financial services are supplied only to consumers.
• C) Total output is equal to household income, business revenues, and net exports.
• D) The flow of imports and exports is controlled by the government.
• E) Business firms supply factors of production and demand government services.

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Definitions:

Revenue Variance

The gap between what was expected in revenue and what was actually earned.

Budgeting Formulas

Mathematical expressions used to forecast and plan financial outcomes based on various inputs and assumptions.

Actual Level

The current, real-world status or extent of an activity or performance.

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue, indicating a company's financial performance.