- The Figure Above Shows the Circular Flow Model

question 142

Multiple Choice

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The figure above shows the circular flow model.

In the figure above, which of the following transactions take place in the factor markets?
i. Michael, a student, orders a computer from Dell online.
ii. Peter gets a job at a Wal-Mart store.
iii. Apple Computer opens a new store in Georgia

• A)ii and iii
• B)Only ii
• C)Only iii
• D)Only i
• E)i and ii

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Definitions:

Utility Levels

Measures of satisfaction or happiness that consumers derive from consuming goods and services.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing preferences.

Marginal Utility

Marginal utility refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

E-books

Digital versions of books that can be read on electronic devices such as tablets, e-readers, or computers.