The circular flow of income shows
A) the dollar value of output is less than the total income.
B) the dollar value of output is exactly equal to the total income.
C) the dollar value of output is more than the total income because of the existence of profits.
D) the dollar value of output is more or less than the total income, depending on whether profits are positive or negative.
B
You might also like to view...
Which of the following businesses have limited liability?
A) Mainline Texaco, a gas station downtown with Frank Jones as proprietorship B) Fakker, Chayse, and Blaimm, partners in medical malpractice law C) StrideRite Shoe Company, Inc., a corporation that produces shoes D) Both answers B and C are correct.
What played the largest role in the formation of poor black ghettos?
A. Welfare B. High birth rates among unwed mothers C. The migration of black middle- and working-class families from poor black neighborhoods in the 1960s and 1970s D. Rising employment discrimination
Which of the following is most likely to be private property?
A. bees B. farm raised shrimps C. house flies D. winds
Use the information provided in Table 7.1 below to answer the question(s) that follow.
Table 7.1Inputs Required to Produce a Product Using Alternative Technologies 
Refer to Table 7.1. If the hourly wage rate is $7 and the hourly price of capital is $10, which production technology should be selected?
A. A B. B C. C D. D