What Does the Simple Circular-Flow Diagram Illustrate

question 102

Multiple Choice

What does the simple circular-flow diagram illustrate?

• A)that expenditure generates income so that income and the value of production are equal
• B)that the economy's income exceeds its expenditure
• C)that the expenditure of an economy exceeds its income
• D)that money "flows" from households to firms and not the other way around

---

Definitions:

Genetic Structure

The organization and arrangement of genetic information within an organism or cell, including chromosomes and genes.

Liposarcoma

A rare type of cancer that arises in fat cells in deep soft tissue, such as that inside the thigh or in the retroperitoneum.

Tumor

A cluster of tissue that becomes unusual because cells multiply excessively or avoid programmed cell death.

Glioblastoma

A highly aggressive and the most common primary malignant brain tumor in adults, characterized by rapid growth and invasion into adjacent brain tissue.