Refer to the diagram of the circular flow of income. The key lessons from this diagram are that:
(i) all flows of resources are matched by flows of money.
(ii) the market value of total output must be equal to total spending.
(iii) total spending must equal total income.
(iv) all inputs are provided by businesses.

A)(i) and (iv)
B)(ii) and (iii)
C)(i), (ii), and (iii)
D)(i), (ii), (iii), and (iv)

Question

Refer to the diagram of the circular flow of income. The key lessons from this diagram are that:
(i) all flows of resources are matched by flows of money.
(ii) the market value of total output must be equal to total spending.
(iii) total spending must equal total income.
(iv) all inputs are provided by businesses.

A)(i) and (iv) 
B)(ii) and (iii) 
C)(i), (ii), and (iii) 
D)(i), (ii), (iii), and (iv)

Quizplus · Accepted Answer

The Answer of Refer to the diagram of the circular flow of income. The key lessons from this diagram are that:
(i) all flows of resources are matched by flows of money.
(ii) the market value of total output must be equal to total spending.
(iii) total spending must equal total income.
(iv) all inputs are provided by businesses.

A)(i) and (iv) 
B)(ii) and (iii) 
C)(i), (ii), and (iii) 
D)(i), (ii), (iii), and (iv)

Refer to the Diagram of the Circular Flow of Income