The Simple Circular Flow of Income Shows That the Total

question 221

Multiple Choice

The simple circular flow of income shows that the total income in an economy equals

• A) total profits earned by firms.
• B) all taxes paid by households.
• C) the total amount of money supplied by the government.
• D) total expenditures.

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Definitions:

Composite Volcano

A common type of volcano constructed of alternating layers of lava, pyroclastic deposits, and mass-wasting deposits, including mudflows; synonym: stratovolcano.

Pyroclastic Deposits

Accumulations of volcanic material ejected during an eruption, including ash, bombs, and blocks.

Composite Volcano

A volcano built by both lava flows and pyroclastic eruptions, typically featuring steep profiles and explosive activity.

Shield Volcano

A broad, domed volcano with gently sloping sides, primarily formed by the eruption of low-viscosity lava.