The Circular Flow Diagram Shows That

question 26

Multiple Choice

The circular flow diagram shows that

• A) goods and factor markets are independent.
• B) the total amount of income generated by the economy equals the total purchases of final goods and services.
• C) the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services.
• D) consumption expenditure equals saving.

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Definitions:

Limnetic Zone

The open water area of a freshwater body, such as a lake, where sunlight penetrates deeply enough for photosynthesis to occur.

Decomposers

Organisms, such as bacteria and fungi, that break down dead organic material, recycling nutrients back into the ecosystem.

Lake Zone

A designated area within a lake, categorized by depth, distance from shore, or ecological characteristics, influencing the types of organisms and conditions present.

Littoral Zone

the part of a sea, lake, or river that is close to the shore, where sunlight penetrates to the bottom enabling plant growth.