According to the circular flow of income and output, which of the following is not true?
A. Total income and total output must be equal.
B. Goods and services flow in one direction and money payments flow in the other direction.
C. In every economic? transaction, the seller receives exactly the same amount that the buyer spends.
D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
Ans: D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
You might also like to view...
When a price fails to reflect all the benefits of a product, too much of it is produced and/or consumed
a. True b. False Indicate whether the statement is true or false
The largest single share of all income earned by Americans consists of:
A. wages and salaries. B. interest. C. rents. D. corporate profits.