Ask Question
17 July, 11:41

The simple circular flow model shows that

A. total income received by households is different from the dollar value of all goods and services produced because the units of measurement are not the same.

B. total income received by households is less than the total value of goods and services produced because of leakages.

C. total income received by households is less than total payments to business because there are business profits.

D. total income received by households must be equal to the dollar value of all goods and services produced.

+4
Answers (1)
  1. 17 July, 12:54
    0
    D. total income received by households must be equal to the dollar value of all goods and services produced.

    Explanation:

    According to simple circular flow diagram, total income received by household should be equal to dollar value of goods and services produced, in simple words, flow in should be equal to flow out or leakages should be equal to injections.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The simple circular flow model shows that A. total income received by households is different from the dollar value of all goods and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers