In a Circular-Flow Diagram

question 242

Multiple Choice

In a circular-flow diagram,

• A)taxes flow from households to firms, and transfer payments flow from firms to households.
• B)income payments flow from firms to households, and sales revenue flows from households to firms.
• C)resources flow from firms to households, and goods and services flow from households to firms.
• D)inputs and outputs flow in the same direction as the flow of dollars, from firms to households.

---

Definitions:

National Power

The strength and influence of a country on a global scale, encompassing military, economic, political, and cultural aspects.

Federalism

A system of government where power is divided among a central authority and constituent territorial units.

Sovereignty

Sovereignty is the supreme power or authority of a state to govern itself or another state, free from external control.

Constitutionally Divided

A term referring to the separation of powers among the different branches of government as defined by a constitution.