The Outer Loop of the Simple Circular flOw of Income

question 75

Multiple Choice

The outer loop of the simple circular flow of income, comprising only households and firms, captures the flow of _____.

• A) taxes and government spending
• B) wages and spending on goods and services
• C) savings and investments
• D) exports and imports

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Definitions:

Stars

High-growth, high-market-share products or business units in the Boston Consulting Group matrix, indicating they have potential to generate significant revenue.

Growth

An increase in some quantity over time, such as economic growth which refers to an increase in the market value of goods and services produced by an economy.

High Performers

Individuals who consistently exceed standard performance expectations in their roles, contributing significantly to organizational goals.

Stars

In business, it refers to products or business units with high market growth and high market share in a competitive industry.