Which of the Following Will Invariably Be Illustrated by a Circular

question 28

Multiple Choice

Which of the following will invariably be illustrated by a circular flow of income diagram?

• A)The value of foreign net output
• B)Trade deficit always equals payments for resource services
• C)The value of output is equal to income
• D)The value of private production always equals the value of household income
• E)The value of net exports is positive

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Definitions:

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including those held by institutional investors and restricted shares held by company’s insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of one's holdings remains the same.

Shareholder Wealth

The total value of a shareholder's equity in a company, taking into account the current market value of shares owned.

Trading Range

A price range in which stocks are thought to appeal to the widest variety of investors. Typically between $30 and $100. Stock splits function to keep prices within a trading range when the stock is appreciating.