In the Circular Flow Model

question 74

Multiple Choice

In the circular flow model:

• A)households supply factors of production to firms.
• B)households receive income through the factor market.
• C)households spend income in the product market.
• D)all of the above hold true.

---

Definitions:

New Ideas

Original thoughts or suggestions about possible courses of action or concepts that have not been previously considered.

Direct Perception

The process of immediately understanding or knowing something through sensory input, without the need for conscious reasoning.

Creativity

The use of imagination or original ideas to create something; inventiveness that is often applied in artistic or problem-solving contexts.

Scholastic Ability

The capacity or potential of an individual to perform and achieve in academic settings.