Author Question: The observation that goods and services flow in one direction and money payments flow in another ... (Read 83 times)

codyclark · **on:** Jun 30, 2018

The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind

A) a barter economy. B) the circular flow of income.
C) a pure command economy. D) the double coincidence of wants.

Question 2

The simple circular flow of income shows that the total income in an economy equals

A) all taxes paid by households.
B) total expenditures.
C) the total amount of money supplied by the government.
D) total profits earned by firms.