The Circular Flow Model Shows That Goods and Services Flow

question 10

Multiple Choice

The circular flow model shows that goods and services flow from

• A) businesses to households.
• B) households to business.
• C) the factor market to businesses.
• D) the goods market to businesses.
• E) the factor markets to the goods markets.

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Definitions:

Aristocracy

A class of people considered to have superior status or privileges, often inherited, based on noble lineage, wealth, or titles.

Direct Democracy

A form of democracy where the people vote on policies directly, rather than through elected representatives.

Representative Democracy

A system of government where citizens elect representatives to make decisions on their behalf.

Governmental Elections

The structured process through which citizens of a political entity select individuals to hold public office and contribute to governance.