Which of the Following Is a Leakage from the Circular

question 87

Multiple Choice

Which of the following is a leakage from the circular flow?

• A)investment
• B)imports
• C)government purchases
• D)government borrowing
• E)transfer payments

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Definitions:

Arousal

Physiological activation (such as increased brain activity) or increased autonomic responses (such as increased heart rate, sweating, or muscle tension).

Incentives

External objects or external goals, rather than internal drives, that motivate behaviors.

Drive Reduction

A motivation theory that suggests behavior is motivated by the desire to reduce internal drives of tension or arousal that arise from unmet needs.

Pleasure Principle

A psychoanalytic concept suggesting that individuals seek pleasure and avoid pain to satisfy their biological and psychological needs.