In the Circular Flow Model

question 108

Multiple Choice

In the circular flow model,

• A)goods and services are sold by households and purchased by firms.
• B)the government buys goods and services from firms.
• C)the government has no direct interaction with either households or firms.
• D)the government is represented as a separate market.
• E)factor markets are where goods rather than services are bought and sold.

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Definitions:

Advertiser Risk

The potential for loss or negative outcomes faced by advertisers due to various factors such as audience reception, media placement errors, or campaign failures.

Exposure of Ads

The process of presenting an advertisement to a target audience to create awareness or generate interest.

Need to Connect

The human desire to form and maintain personal relationships and emotional bonds with others.

People's Need

Fundamental requirements that individuals seek to fulfill, such as physiological necessities, safety, love, and self-esteem.