Which One of the Following Is an Example of the Circular

question 103

Multiple Choice

Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?

• A) Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms.
• B) The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets.
• C) Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms.
• D) The firms in the factor markets pay to households in the form of wages, interest, rent and profit ⎯ for resources demanded.

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Definitions:

Emergency Practices

Procedures and actions that are planned and implemented in order to respond effectively to potential emergency situations.

World-view

Encompasses the fundamental cognitive orientation of an individual or society encompassing the whole of the individual's or society's knowledge and point of view.

Normative Influence

The impact others have on our behavior through norms or behaviors that are deemed acceptable by a group, leading individuals to conform in order to be liked or accepted.

Solomon Asch

A prominent psychologist known for his research on conformity, including his famous experiments demonstrating how people could be influenced to contradict their own accuracy for group consensus.