The Underlying Principle of the Circular-Flow Diagram Is That the Flows

question 384

True/False

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

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Definitions:

Wage Rate

The standard amount of pay given to workers per unit of time, often per hour or year.

Transfers

Transactions where wealth or income is redistributed from one party to another without any exchange of goods or services, such as grants or social security payments.

Households

Units of one or more persons living together who make joint decisions on consumption, work, and income generation.

Discrimination Coefficient

A measure in economics and social sciences to quantify the degree of discrimination or bias shown towards or against a particular group or individual.