Which of these groups contribute to total GDP?
A. human records, raw materials, capital goods
B. government spending, capital goods, net imports
C. net imports, net exports, household spending
D. net exports, household spending, government spending
D. net exports, household spending, government spending
A circular flow diagram is shown. A center box is labeled A, with arrows pointing to and from the center box and the top and bottom boxes. The top box is labeled D, and the bottom box is labeled B. A box on the left is labeled C, and a box on the right is labeled Households. The outer boxes B, C, D, and Households are connected by curved lines in a circular shape.
Use the image to answer the question.
Which labels, according to the diagram represent expenditures, or goods and services?
A. A
B. B
C. C
D. D
B. B
Which of the following is most likely to happen if many families in a community stop spending as much money at the local grocery store?
A. Farmers would produce more crops to increase supply.
B. The grocery store would lay off several employees.
C. The grocery store would invest in more displays.
D. The families would have to begin growing their own food.
B. The grocery store would lay off several employees.
Which of these events would most likely cause a recession?
A. The price of gasoline rises by ten percent.
B. Political leaders pass large spending cuts.
C. Many people find new jobs at the same time.
D. The value of total net exports rises unexpectedly.
B. Political leaders pass large spending cuts.
What is an economy's total output divided by its total population called?
A. gross national product
B. circular flow
C. gross domestic product per capita
D. net export