Provide a Circular Flow Diagram for Households Only, and Describe

question 7

Essay

Provide a circular flow diagram for households only, and describe the circular flow of income.

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Definitions:

Personal Relationship

A connection between two or more individuals based on emotional bonds, social associations, or interactions.

Rational Approach

A method or process based on logic, reason, and systematic planning rather than on emotions or impulse.

Test Validation

The process of ensuring that a test is reliable and accurately measures what it is designed to assess.

Predictive Validity

Predictive validity refers to the extent to which a score on a scale or test predicts future performance on a related outcome.