The Four Key Markets That Coordinate the Circular Flow of Income

question 73

Multiple Choice

The four key markets that coordinate the circular flow of income are

• A) goods and services, resources, loanable funds, and foreign exchange.
• B) consumption, investment, stock, and government.
• C) government, household goods, bond, and business.
• D) financial, corporate, stock, and loanable funds.

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Definitions:

Capabilities

The quality or state of being capable; it refers to an organization's or individual's potential or ability to achieve tasks or goals.

Poverty

A general scarcity or lack of material possessions or money for consumption; a persistent lack of income that deprives an individual of the ability to obtain appropriate levels of food, water, clothing, shelter, health care, and/or education.

Daily-Wage Worker

An individual who is paid at the end of each day for their labor, often without long-term employment commitments.

Poverty

A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.