Households Are Vital to the Circular Flow Model in Which

question 4

Multiple Choice

Households are vital to the circular flow model in which two ways?

• A) They supply factors of production and purchase goods and services.
• B) They export and import goods and services.
• C) They vote for political officers and pay taxes.
• D) They facilitate exchange between consumers and firms and supply funds.

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Definitions:

Permanently Enslaved

Refers to individuals who were subjected to slavery with no possibility of freedom, historically applicable in contexts such as chattel slavery.

Indigenous People

Refers to ethnic groups who are the original inhabitants of a given region, maintaining traditions or other aspects of an early culture that is associated with a given area.

Entrepreneurial Spirit

The motivation, creativity, and willingness to take risks in starting and managing a business venture, often leading to innovation and economic growth.

Mass Incarceration

The extensive and increasing phenomenon of imprisoning a large portion of the population, often critiqued for its disproportionate impact on minority communities.