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.
d
You might also like to view...
How does the decreasing use of traditional cameras affect the market for traditional camera film?
A) The quantity of traditional camera film demanded decreases. B) The demand curve for traditional camera film shifts to the right. C) The demand curve for traditional camera film shifts to the left. D) The quantity of traditional camera film demanded increases.
Buying at a low price in one market and reselling at a higher price in another market will
A) not generate any profit because of transactions costs. B) not generate any profit because of transportation costs. C) eventually eliminate all of the price differences. D) eventually eliminate most, but not necessarily all, of the price differences.
In a simple economy without government or foreign trade, any income not consumed is called
A) net investment. B) depreciation. C) saving. D) investment.
A group of firms acting together to limit output, raise price, and increase economic profit is a called a
A) duopoly. B) monopolistic oligopoly. C) competitive oligopoly. D) cartel. E) multi-firm competitive monopoly.