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Which of the Following Is TRUE Regarding the Circular Flow

question 310

Multiple Choice

Which of the following is TRUE regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms.
II. Retained earnings are considered income earned by firms rather than part of households' income.
III. The government, households, and firms all have transactions in the goods market.


Definitions:

Listen

The act of actively paying attention to sounds, which in a business context, often refers to understanding the needs or feedback of customers or clients.

Service Providers

Companies or individuals that offer services to others in exchange for compensation.

Contagious

Capable of being transmitted from one individual to another through direct or indirect contact.

Perishable

Items that have a limited lifespan and can spoil or decay, such as food products, flowers, and certain pharmaceuticals.

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