Figure 2-2 -Refer to Figure 2-2.If the Flow of Goods and Services

question 249

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

• A)the flow of factors of production is also part of what is represented by the inner loop.
• B)the flow of income paid to households is also part of what is represented by the inner loop.
• C)the flow of revenue to firms is also part of what is represented by the inner loop.
• D)households must be sellers of output.

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Definitions:

Personality Model

A framework or system that categorizes and explains the different aspects of human personality and behavior.

Thinking And Feeling

Cognitive and emotional processes involved in mental activities and emotional responses.

Decisions

The act or process of selecting among alternatives based on the values and preferences of the decision maker.

Making Decisions

The cognitive process of selecting a course of action among several alternatives to achieve a desired outcome.