The Figure Above Shows the Circular Flow Model

question 198

Multiple Choice

The figure above shows the circular flow model.
-In the figure above,which of the following represents a real flow?

• A) Expenditures on real estate services
• B) Profit
• C) Capital
• D) Wages
• E) Both B and D

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Definitions:

Legitimate Power

Authority or power derived from a position, role, or legal standing, which is recognized and accepted by others.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties.

Reward Power

The capacity to offer something desirable to influence another’s behavior or decisions.

Charity Organization Society

A nineteenth-century philanthropic movement aimed at providing aid to the poor through coordinated services and promoting self-help among aid recipients.