Figure 2-11 -Refer to Figure 2-11.One Segment of the Circular Flow Diagram

question 114

Multiple Choice

Figure 2-11

-Refer to Figure 2-11.One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M.What is market K and who are economic agents M?

• A)K = factor markets; M = households
• B)K = product markets; M = households
• C)K = factor markets; M = firms
• D)K = product markets; M = firms

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Definitions:

Intensity

The degree of strength, force, or energy in a phenomenon or activity.

Convergence

The turning inward of the eyes, which occurs when they focus on a nearby object.

Eyes

Organs of vision that detect light and convert it into electro-chemical impulses in neurons.

Nearby Object

An item or entity that is located within a short distance from a point of reference, often within easy reach or view.