Which of the following statements are correct? a) By definition, income is always equal to production, but there is no guarantee that all income will be spent. b) Equilibrium occurs when none of the participants in the economy have any incentive to change their behaviour. c) When spending is equal to income, then the demand for goods and services is greater than the available supply. d) Savings are a leakage in the circular flow of production, income, and spending.

Which of the following statements are correct? a) By definition, income is always equal to production, but there is no guarantee that all income will be spent. b) Equilibrium occurs when none of the participants in the economy have any incentive to change their behaviour. c) When spending is equal to income, then the demand for goods and services is greater than the available supply. d) Savings are a leakage in the circular flow of production, income, and spending.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 10P

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