In the Circular-Flow Diagram, One Loop Represents the Flow of Goods

question 261

True/False

In the circular-flow diagram, one loop represents the flow of goods and services, and the other loop represents the flow of factors of production.

---

Definitions:

Functional Approach

The functional approach is a method of organizational structure where a company is divided into departments or functions, each handling specific tasks or operations like marketing, finance, or manufacturing.

Managerial Functions

The main roles and responsibilities of managers, typically including planning, organizing, leading, and controlling organizational resources to achieve goals.

Henri Fayol

A French engineer and scholar who is famous for developing the general theory of business administration and identifying the five primary functions of management.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.