Which of the Following Statements Is FALSE

question 355

Multiple Choice

Which of the following statements is FALSE?

• A) The value of total income is equal in value to total output because profit is a cost of production.
• B) In the circular flow model, households sell factor services to businesses in return for factor payments.
• C) Businesses sell goods and services to households who use their income to pay for them.
• D) Total income is always greater than total output.

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