According to the Circular-Flow Diagram, GDP

question 314

Multiple Choice

According to the circular-flow diagram, GDP

• A) can be computed as payments firms make to factors of production plus revenues they receive from the sales of goods and services.
• B) can be computed as the revenue firms receive from the sales of goods and services minus the payments they make to factors of production.
• C) can be computed as either the revenue firms receive from the sales of goods and services or as revenues they receive from the sales of goods and services.
• D) can be computed as the payments firms make to factors of production, but not as revenues they receive from the sales of goods and services.

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Definitions:

Gantt Chart

A type of bar chart that illustrates a project schedule, showing the start and finish dates of elements.

Time Line Chart

Chart that shows how much time is needed to complete each task in a project.

Surface Chart

A type of chart used in data visualization to represent three-dimensional data; it shows the relationships among three variables.

Cumulative Effect

The overall impact resulting from the addition of several individual effects.