Based on the Circular Flow Model, Goods and Services Flow

question 108

Multiple Choice

Based on the circular flow model, goods and services flow from:

• A) households to businesses in product markets.
• B) businesses to households in product markets.
• C) households to businesses in factor markets.
• D) businesses to households in factor markets.

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Definitions:

Approach-Avoidance Conflict

A psychological struggle experienced when an individual is attracted to and repelled by the same goal or object at the same time.

Car Loan

A financial agreement in which a lender provides money to a borrower for the purpose of purchasing a car, to be repaid with interest over an agreed period.

Approach-Avoidance Conflict

A situation where a single goal or option has both attractive and unattractive aspects, leading to internal conflict about pursuing it.

Approach-Approach Conflict

A psychological conflict occurring when a person must choose between two desirable goals, leading to tension and indecision.