In the Circular Flow Model for an Economy That Produces

question 136

Multiple Choice

In the circular flow model for an economy that produces only consumption goods:

• A) factor incomes flow from households to firms.
• B) factors of production flow from households to firms.
• C) factor incomes flow from households to firms and to the government.
• D) factors of production flow from firms to households.

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Definitions:

Positive

Refers to a condition or state that is constructive, optimistic, or characterized by a beneficial outcome.

Unrelated

Not connected or relevant to something.

Prevalence

The percentage of people identified with a disease or condition at a given moment.

Incidence

a measure used in epidemiology to refer to the rate at which new cases of a disease or condition occur in a population over a specified period of time.