Which of the Following Best Characterizes the Circular Flow of Income

question 98

Multiple Choice

Which of the following best characterizes the circular flow of income?

• A) Businesses buy resources from the government, and households buy goods and services from businesses.
• B) Businesses buy resources from households, and households use the money from the sale of resources to buy goods and services from businesses.
• C) Households buy factors of production from businesses, and businesses buy goods and services from households.
• D) The government purchases resources from businesses and households and then sells goods and services to businesses and households.

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Definitions:

Narcissistic Personality Disorder

A mental disorder characterized by an inflated sense of importance, need for excessive attention, and lack of empathy for others.

Ego

According to Freud, the decision-making component of personality that operates according to the reality principle.

Environmental Factors

External elements, such as climate, geographical location, and cultural influences, that can affect individuals' behaviors, development, and well-being.

Personality Disorders

Mental health conditions characterized by enduring patterns of thinking, feeling, and behaving that deviate from cultural expectations and cause significant distress or functional impairment.