In a Simple Circular-Flow Diagram

question 9

Multiple Choice

In a simple circular-flow diagram,

• A)households spend all of their income.
• B)all goods and services are bought by households.
• C)expenditures flow through the markets for goods and services,while income flows through the markets for the factors of production.
• D)All of the above are correct.

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Definitions:

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A symbol of McDonald's, recognized worldwide, which can elicit conditioned responses (such as hunger or craving) through its association with fast food.

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Mental activities involved in acquiring, processing, and storing knowledge, including perception, memory, and reasoning.

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