Which Idea Does the Circular Flow Model Illustrate

question 21

Multiple Choice

Which idea does the circular flow model illustrate?

• A) Every expenditure someone makes in an economy is exactly equal to another individual's income.
• B) Only two markets exist in every economy-input and output.
• C) Income is lower when there is more spending on services compared to goods.
• D) The flow of two things in the economy-production and money-travel in the same direction.

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Definitions:

Safety Monitoring

The process of continuously observing and analyzing a system or environment to ensure that it remains free from danger or risk.

Right to Be Heard

This principle asserts that consumers have the right to voice complaints and concerns about a product or service and to have those concerns addressed promptly and fairly.

Public-policy Makers

Individuals or groups involved in the development of rules and regulations that guide the operation of a society and its economic activities.

Consumer Complaints

Feedback or grievances expressed by customers regarding dissatisfaction with a product or service, often addressed through customer service departments.