In the Circular Flow Model, Which of the Following Is

question 75

Multiple Choice

In the circular flow model, which of the following is on the selling side in the goods market?

• A)exporters
• B)only firms
• C)both firms and households
• D)only households
• E)federal, state, and local governments

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Definitions:

Natural Monopoly

A market condition where due to high fixed or start-up costs, the most efficient number of firms in the industry is one.

Electric Power

The production and delivery of electricity through an interconnected network for uses such as lighting, heating, and powering appliances.

New Technology

The development and application of innovative tools, machines, techniques, and methods that improve the efficiency and productivity of operations.

Natural Monopolies

Industries where a single firm can supply a good or service to an entire market at a lower cost than two or more firms could, often due to economies of scale.