The Following Question Are Based on the Following Circular Flow

question 4

Multiple Choice

The following question are based on the following circular flow diagram:

-In a simple circular flow model of an economy

• A) households buy factors of production from businesses.
• B) the flow of income to households from businesses is greater than the flow of expenditures by households for goods produced by businesses.
• C) businesses buy final goods and services produced by households.
• D) the total amount of labor hours worked equals the total number of goods produced.
• E) households are owners of resources and purchasers of final goods and services.

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Definitions:

Considered

Thought about or taken into account when making a decision or judgment.

Perfection

In legal terms, the act of completing all required steps to secure a legal right or interest, making it enforceable against third parties.

Legal Process

The procedure of pursuing formal legal action through courts, including all judicial steps from initiation to resolution.

Secured Obligation

A debt or other type of financial obligation that is backed by collateral to reduce the risk of non-payment.