The Basis of the Circular-Flow Diagram Is That

question 105

Multiple Choice

The basis of the circular-flow diagram is that:

• A)the best models avoid making assumptions.
• B)goods and services flow in a circle in the factor market.
• C)resources are sold along with goods and services in the resource market.
• D)the flow of money into each market or sector is equal to the flow of money coming out of that market or sector.

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Definitions:

David McClelland

A psychologist known for developing the theory of needs, which includes the needs for achievement, power, and affiliation, influencing the understanding of motivation.

Frederick Herzberg

An American psychologist best known for introducing job enrichment and the Motivator-Hygiene theory, also known as the Two-Factor Theory of motivation.

Maslow's Hierarchy

A psychological health theory based on meeting inherent human needs in order of importance, leading to the ultimate goal of self-actualization.

Physiological Needs

Fundamental human requirements for survival, such as food, water, shelter, and sleep, as identified in Maslow's hierarchy of needs.