Which of the Following Best Characterizes the Circular Flow of Income

question 133

Multiple Choice

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

• A) Households buy goods and services from businesses, and businesses sell goods and services to households.
• B) The government purchases resources from businesses and households and then sells goods and services to businesses and households.
• C) Businesses buy resources from the government, and households buy goods and services from businesses.
• D) Businesses buy resources from households, and households use their income to buy goods and services from businesses.

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Definitions:

Military Joint

Refers to a joint operation or command where members from different services of the armed forces work together.

Chiefs Of Staff

Senior officials who lead the administrative and managerial functions of an organization, often within government or military.

Cold War

A period of geopolitical tension and ideological conflicts between the United States and the Soviet Union, from the late 1940s to the early 1990s.

Soviet Union

A former federal socialist state in northern Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).