In the Simple Circular Flow Model, Total Income in One

question 27

Multiple Choice

In the simple circular flow model, total income in one nation must equal

• A) the sum of wages, rents, interest and profits.
• B) the total monetary value of all final goods and services.
• C) the yearly amount earned by that nation's resources.
• D) All of the above are correct.

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Definitions:

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be the basis of empathy and understanding others' actions.

Hopscotch

A children's game involving throwing a small object into numbered spaces outlined on the ground and hopping through the spaces to retrieve the object.

Systematic Desensitization

A behavioral therapy technique used to reduce phobia or anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Counterconditioning

A behavior therapy technique where an undesirable response to a stimulus is replaced with a more desirable response.