In the Circular Flow Model,the Value of Total Production for an Economy

question 230

Multiple Choice

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

• A)equals
• B)is greater than
• C)is less than
• D)may be greater than or less than

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Definitions:

Gross Assets

The total value of all assets owned by a company, individual, or entity before subtracting any liabilities.

Section 1202

A section of the Internal Revenue Code providing an exclusion from federal income tax for gains from certain small business stock held for more than 5 years.

Section 1221 Asset

Properties or assets, as defined by the IRS, that are used in a trade or business and are held for more than one year.

Rental Property

Real estate property leased or rented out to tenants, generating income for the owner.