The Circular Flow of Income Shows That GDP Can Be

question 20

True/False

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

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Definitions:

Disutility

The subjective discomfort or dissatisfaction experienced by individuals from work or undesirable activities.

Accident Damage

Physical harm or destruction caused to property or persons as a result of an unexpected and non-deliberate incident.

Decision Making

Decision making involves selecting a course of action from several alternatives, often based on judgment, research, and reasoning.