Which of the Following Best Illustrates the Circular flOw Model

question 109

Multiple Choice

Which of the following best illustrates the circular flow model in action?

• A) Bobbie goes to work and builds cars; she uses the income she receives to buy food at the grocery store.
• B) Evan buys a new couch; the owner of the furniture store uses some of the money from the sale to pay her supplier and uses the rest to take her family out to dinner.
• C) Boeing experiences a surge in orders for new airplanes, prompting the company to hire more workers.
• D) All of these answers illustrate the workings of the circular flow model.

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Definitions:

Farm Products

Goods that are produced through farming activities, including crops, livestock, and dairy products.

Food-Stamp Program

A government assistance program designed to help low-income households purchase food by providing them with food stamps or electronic benefits.

Farm Products

Goods produced through agricultural activities, including crops, livestock, and other items derived from farming.

Freedom To Farm Act

A law passed in 1996 that revamped 60 years of U.S. farm policy by ending price supports and acreage allotments for wheat, corn, barley, oats, sorghum, rye, cotton, and rice.