The Circular Flow of Income Illustrates

question 42

Multiple Choice

The circular flow of income illustrates

• A)the flows of expenditures and income in a household.
• B)that there is no relationship between goods markets and factor markets.
• C)that firms own the factors of production.
• D)the interaction of households and firms through the factors and goods markets.
• E)that the flow of payments moves in the same direction as the flow of goods.

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Definitions:

Ligaments

Tough, fibrous tissues that connect bones to other bones, providing joint stability.

Afferent Neurons

Afferent neurons, also known as sensory neurons, are nerve cells that carry sensory information from the body's tissues and organs to the brain and spinal cord.

Efferent Neurons

Nerve cells that carry neural impulses away from the central nervous system to the body's muscles and glands, facilitating action and response.

Sense Organs

Parts of the body that are specifically designed to receive and process sensory information, such as eyes, ears, nose, tongue, and skin.