The Circular Flow Model Shows the Flow of

question 27

Multiple Choice

The circular flow model shows the flow of

• A)only money throughout the economy.
• B)expenditure and income throughout the economy.
• C)only tax payments and government expenditures.
• D)only funds in stock and bond markets.
• E)goods market and factor markets as they move through the economy.

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Definitions:

Legal Acceptance

The formal agreement to the terms of a contract, making the contract legally binding and enforceable.

Ownership

The legal right to possess, use, and dispose of something, whether it be physical property, intellectual property, or another asset.

Trade Secret

Information, including a formula, practice, process, design, instrument, pattern, or compilation of information, not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

Unlawfully Acquired

Refers to assets or goods obtained in violation of the law.