The Circular Flow Diagram Shows That

question 256

Multiple Choice

The circular flow diagram shows that

• A)the value of total income is equal to the total value of expenditures on final goods and services.
• B)firms pay households wages,and households receive transfer payments from firms.
• C)households spend all their income on goods and services.
• D)GDP will be less than the total value of expenditures on final goods and services in the economy.

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Definitions:

Monozygotic Twins

Twins who are genetically identical.

Dizygotic Twins

Twins who are produced when two separate ova are fertilized by two separate sperm at roughly the same time.

Constriction

The process of becoming narrower or tightening; in psychology, it can refer to a narrowing of thoughts or behaviors.