Subject - Economics:

Macroeconomics

MCQ - 53-4063

Question:

Which of the following is true of the complete circular flow model of an open economy?

All goods and services flow through the government in exchange for resource payments.
There is no role for the foreign sector.
Households supply resources to producers in exchange for goods and services.
There is no role for the foreign sector.
The government collects taxes from firms and households in exchange for goods and services.

Correct Answer: E

Explanation:

In the full circular flow model, the role of government is to collect taxes from firms and households in exchange for goods and services. Choice C is tempting, but households supply resources in exchange for wages, which they then use to purchase goods and services.

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269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Which of the following is true of the complete circular flow model of an open economy? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 53-4063.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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