The Lower Portion of the Circular Flow Model Contains Factor

question 11

Multiple Choice

The lower portion of the circular flow model contains factor markets in which households provide:

• A) labor, money, and machines.
• B) savings, spending, and investment.
• C) natural resources, labor, and capital.
• D) output of all final goods and services produced.

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Definitions:

Foreigners Own

The ownership of domestic assets such as property, companies, or government debt by non-resident individuals or entities.

Balance On Current Account

A measure of a country's international trade where the value of imports and exports of goods, services, and monetary transfers are accounted.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a period.

U.S. Exports

Goods, services, and technologies sold and shipped by the United States to other countries, contributing to the nation's income and employment.