In the Circular Flow Model, the Flow of Dollars from Firms

question 27

Multiple Choice

In the circular flow model, the flow of dollars from firms to households is paid _____, and the flow of dollars from households to firms is paid _____.

• A)as wages, capital income, and profits; for goods and services
• B)for value added; as imputed values
• C)in current dollars; in constant dollars
• D)as interest and dividends; for depreciation and taxes

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Definitions:

Recall

The mental process of retrieving facts or information from memory.

Turn-Taking

A type of communication management mechanism where participants in a conversation understand and follow implicit or explicit rules on when to speak.

Pragmatics

The practical aspects of communication, such as adaptation of language to fit the social situation.

Syntax

The rules in a language for placing words in the proper order to form meaningful sentences.