The Simple Circular Flow Model Shows That

question 40

Multiple Choice

The simple circular flow model shows that

• A)households are on the buying side of both product and resource markets.
• B)businesses are on the selling side of both product and resource markets.
• C)households are on the selling side of the resource market and on the buying side of the product market.
• D)businesses are on the buying side of the product market and on the selling side of the resource market.

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Definitions:

Continental Rifting

A tectonic process whereby the continental lithosphere stretches and breaks apart, leading to the formation of new ocean basins.

Passive Margin

The transition between oceanic and continental crust that is not an active plate boundary, typically characterized by a broad continental shelf and little seismic activity.

Island Arc

An island arc is a type of archipelago, composed predominantly of a series of volcanoes, which arcs roughly parallel to the boundary of oceanic tectonic plates that are being subducted beneath lighter continental plates.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, potentially leading to the formation of a new ocean basin.