Circular Flow and GDP

TRUE

FALSE

Assumes that central planning is taking place

Illustrates how natural resources are created

Illustrates how money is created by the banking system

Illustrates the interdependence of businesses and consumers

TRUE

FALSE

TRUE

FALSE

TRUE

FALSE

refers to production by the citizens of a country.

refers to production within the economy.

refers to production of goods only.

refers to production of services only.

add to neither U.S. GDP nor Thailand's GDP.

add to Thailand's GDP but not to U.S. GDP.

count as part of U.S. GDP since it is a U.S. corporation.

count for both Thailand's GDP and U.S. GDP.

consumer income in an economy over a period of time.

capital accumulation in an economy over a period of time.

sales in an economy over a period of time.

final goods and services produced in an economy over a period of time

TRUE

FALSE