In the simple circular flow model, total income in one nation must equal
A) the sum of wages, rents, interest and profits.
B) the total monetary value of all final goods and services.
C) the yearly amount earned by that nation's resources.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In the simple circular flow model, total income in a nation is indeed the sum of wages, rents, interest, and profits (A), which corresponds to the total monetary value of all final goods and services produced within that nation (B), and is also the yearly amount earned by the nation's resources (C). Therefore, all of the given options are correct.

In the Simple Circular Flow Model, Total Income in One