The Circular Flow Diagram Shows That

question 178

Multiple Choice

The circular flow diagram shows that

• A)the value of total income is equal to the total value of expenditures on final goods and services.
• B)firms pay households wages, and households receive transfer payments from firms.
• C)households spend all their income on goods and services.
• D)GDP will be less than the total value of expenditures on final goods and services in the economy.
• E)firms own all factors of production.

---

Definitions:

Series Connection

An electrical circuit arrangement where components are connected end-to-end in a single path for current to flow.

Total Capacitance

In parallel circuits, it's the sum of individual capacitances of all capacitors, and in series circuits, it's calculated through the reciprocal of the sum of the reciprocals of the individual capacitances.

μ F

Microfarad, a unit of capacitance equal to one millionth (10^-6) of a farad, symbolized as µF.

RC Time Constant

The time necessary to charge or discharge a capacitor when it is connected in series with resistance.