In the Circular Flow Model

question 15

Multiple Choice

In the circular flow model,

• A) the government is represented as a separate market.
• B) the government buys goods and services from firms.
• C) goods and services are sold by households and purchased by firms.
• D) factor markets are where goods rather than services are bought and sold.
• E) the government has no direct interaction with either households or firms.

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Definitions:

Buzz

Informal communication that creates excitement, anticipation, or interest in a product, service, or event.

Aspiration Group

A social group that an individual admires and wishes to be associated with, influencing their purchasing decisions and lifestyle choices.

BzzAgent

A word-of-mouth marketing company that enlists consumers to voluntarily test products and share their opinions within their social networks.

Ethnographic Research

A qualitative research method where researchers observe and interact with people in their natural environment to understand their cultures and behaviors.