Which Is True of Leakages and Injections in the Circular

question 145

Multiple Choice

Which is true of leakages and injections in the circular flow?

• A)Leakages minus injections equal GDP.
• B)Injections minus leakages equal GDP.
• C)Leakages minus injections equal zero in equilibrium.
• D)Domestic leakages must equal domestic injections.
• E)Leakages must be greater than injections for the economy to be growing.

Appreciate the importance of considering alternatives and consequences in decision making.

Examine corporate governance principles and the role of corporate responsibility.

Discern the difference between shareholder theory and utilitarianism and their implications for ethical business practices.

Understand the role of whistleblowing and its implications on a company’s reputation and ethical stance.

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Definitions:

Collateral

An asset offered as security for repayment of a loan, forfeitable in the event of default.

Reorganization Plan

A strategy adopted by a company to restructure its business operations, finances, or structure to enhance efficiency or recover from financial distress.

Creditors

Individuals or institutions that lend money or extend credit, and are owed by borrowers or debtors.

Stockholders

Individuals or entities that own shares of stock in a corporation, giving them ownership interests.