Which One of the Following Is an Example of a Circular

question 117

Multiple Choice

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

• A)Households demand their resources from firms in the factor markets and, in turn, supply in the product market, the goods and services produced by the firms.
• B)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 firms in the factor markets and, in turn, demand in the product market, the goods and services produced by the firms.
• D)Firms in the factor markets pay households, in the form of wages, interest, rent and profit, for resources demanded.
• E)The circuit is completed when payments flow from households, through the product markets, to firms for the goods and services they demand.

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Definitions:

Project Execution Phase

The stage in project management where the plan is put into action and the work required is performed.

Project Sponsor

An individual or group that provides financial resources for a project and supports its initiation, planning, and execution.

Day-to-day Operations

Routine activities and tasks that are conducted on a regular basis to ensure the smooth functioning of an organization or project.

Commodity Items

Basic goods that are interchangeable with other goods of the same type and useful in commerce or trade.