Figure 6-1 Shows the Circular Flow Model Where Only Consumption

question 44

Multiple Choice

Figure 6-1 shows the circular flow model where only consumption goods are being produced. Use the figure to answer questions .
Figure 6-1
-Refer to Figure 6-1. The arrow marked "A" represents the flow of:

• A) personal consumption expenditures.
• B) consumer goods and services.
• C) factors of production.
• D) factor incomes.

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Definitions:

Cohesion

The degree to which group members stick together and remain united in pursuit of a common objective.

Consensus

General agreement or collective unanimous opinion among members of a group.

Gestalt

A psychological approach that emphasizes understanding the whole experience rather than its parts, often associated with theories of perception and therapy.

Social Exchange Theory

Social Exchange Theory is a concept that explains social change and stability as a process of negotiated exchanges between parties.