Which of the Following Best Characterizes the Circular Flow Model

question 7

Multiple Choice

Which of the following best characterizes the circular flow model?

• A) Businesses receive revenue from households in exchange for providing inputs and use that revenue to buy goods and services from households.
• B) Households receive income from governments in exchange for providing inputs and use that income to buy goods and services from businesses.
• C) Households receive revenue for selling goods and services to businesses and use that revenue to buy inputs from businesses.
• D) Businesses receive income from households in exchange for providing goods and services and use that income to buy inputs from households.

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Definitions:

Equilibrium

A state in which the forward and reverse reactions occur at equal rates in a chemical reaction, resulting in no net change in the concentration of reactants and products.

Dynamic Equilibrium

Dynamic equilibrium occurs when the rate of forward reaction equals the rate of the reverse reaction in a chemical system, resulting in the concentrations of reactants and products remaining constant over time.

Equilibrium Constant

A mathematical expression that relates the concentrations of reactants and products in a chemical reaction at equilibrium.

Ph

A measure that provides insight into the acidity or basicity level of an aqueous solution; values range from 0 (very acidic) to 14 (very basic).