In a Simple Circular-Flow Diagram, Total Income and Total Expenditure

question 221

Multiple Choice

In a simple circular-flow diagram, total income and total expenditure are

• A)never equal because total income always exceeds total expenditure.
• B)seldom equal because of the ongoing changes in an economy's unemployment rate.
• C)equal only when the government purchases no goods or services.
• D)always equal because every transaction has a buyer and a seller.

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Definitions:

Interquartile Range

A measure of variability, calculated by subtracting the first quartile from the third quartile, indicating the spread of the middle 50% of a dataset.

Fuel Economy

A measurement of how far a vehicle can travel on a given amount of fuel, typically expressed in miles per gallon (mpg) or liters per 100 kilometers (L/100km).

Environmental Protection Agency

A U.S. federal government agency dedicated to protecting human health and the environment by regulating and enforcing laws related to air and water quality, hazardous waste, and more.

Interquartile Range

The difference between the upper (75th percentile) and lower (25th percentile) quartiles, measuring the spread of the middle half of a dataset.