Multiple Choice
Which of the following is TRUE regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms.
II. Retained earnings are considered income earned by firms rather than part of households' income.
III. The government, households, and firms all have transactions in the goods market.
A) I only
B) I and II
C) I and III
D) III only
Correct Answer:
Verified
Correct Answer:
Verified
Q305: A time-series graph reveals whether there is
Q306: Gross domestic product is a measure of
Q307: GDP is defined as the market value
Q308: Which of the following items is NOT
Q309: If a larger fraction of the adult
Q311: In calculating GDP, household production is<br>A) included
Q312: What kind of information is conveyed in
Q313: GDP equals<br>A) C + S + G
Q314: What is the relationship shown by the
Q315: When calculating GDP, underground economic activity is<br>A)