Which equality is not guaranteed by the circular flow diagram?
A) The market value of production must equal the market value of expenditure.
B) The market value of expenditure must equal the market value of income.
C) The income paid to factors of production must equal the market value of expenditure.
D) All of the above are guaranteed by the circular flow diagram.

Question

Quizplus · Accepted Answer

All of the above are guaranteed by the circular flow diagram, meaning that the market value of production must equal the market value of expenditure, the market value of expenditure must equal the market value of income, and the income paid to factors of production must equal the market value of expenditure. Therefore, choice D is the correct answer.

Which Equality Is Not Guaranteed by the Circular Flow Diagram