Because Every Transaction Has a Buyer and a Seller

question 226

Multiple Choice

Because every transaction has a buyer and a seller,

• A)GDP is more closely associated with an economy's income than it is with an economy's expenditure.
• B)every transaction contributes equally to an economy's income and to its expenditure.
• C)the number of firms must be equal to the number of households in a simple circular-flow diagram.
• D)firms' profits are necessarily zero in a simple circular-flow diagram.

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Definitions:

Needy Families

Households that require financial assistance or social aid to meet their basic needs such as food, shelter, and healthcare.

Poverty Threshold

The minimum level of income deemed necessary to achieve an adequate standard of living in a specific geographical area.

Income Inequality

The uneven allocation of income among households or individuals within an economy.

World War II

A global conflict that took place between 1939 and 1945, involving most of the world's nations and resulting in significant geopolitical changes.