Which of the Following Is False About the Circular-Flow Diagram

question 43

Essay

Which of the following is false about the circular-flow diagram?
A.Households are the primary demanders of goods and services.
B.Firms are the primary suppliers of goods and services.
C.Money flows from households to firms as households offer factors of production for sale.
D.Money flows in the direction opposite to goods and services and factors of production.

---

Definitions:

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Mojave Desert

A vast desert region in the southwestern United States known for its unique ecological characteristics and biodiversity, including Joshua trees.

Population

A collection of the same species members who live and reproduce together in a specific location.