Use the Following to Answer Questions

question 317

Multiple Choice

Use the following to answer questions:
Figure: Expanded Circular-Flow Model
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. The total flow of funds into and out of households is:

• A)$1,020.
• B)$1,000.
• C)$850.
• D)$700.

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Definitions:

Surplus

A situation where the quantity supplied exceeds the quantity demanded, or when revenues exceed expenses.

Easily Stored

Refers to items or data that can be kept or archived with minimal effort or resources.

Current Supply

The total amount of a particular good or service available to consumers at the current time.

Price Floor

A government- or group-imposed price control that sets the lowest legal price a commodity can be sold at to prevent market prices from falling below a certain level.