Which of the Following Best Illustrates the Circular Flow Model

question 22

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:

Real Number Line

A line that represents all possible real numbers, including rational and irrational numbers, in a continuous line where each point corresponds to a unique real number.

Tire Pressure

The measure of air pressure within a tire, typically measured in pounds per square inch (PSI) or bar, essential for vehicle performance and safety.

Pounds Per Square Inch

A unit of pressure represented as psi, indicating the amount of force exerted per square inch of area.

Inequality

A mathematical statement indicating that two expressions are not equal, using symbols such as <, >, ≤, or ≥.