Shortly After Moving into Their New Home, Mark and Katherine

question 118

Multiple Choice

Shortly after moving into their new home, Mark and Katherine Gould purchase and install smoke detectors and an alarm system. The Goulds are concerned about fulfilling their need for

• A) survival.
• B) safety.
• C) self-actualization.
• D) esteem.
• E) belonging.

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Definitions:

Circular-Flow Diagram

A visual model of the economy that shows the flow of money, goods and services, and factors of production between households and businesses.

Firms

Businesses or companies that produce goods or provide services with the aim of making a profit.

Resources

Assets and inputs used to produce goods and services, such as time, labor, capital, and natural resources.

Factor Market

The marketplace for services of the factors of production (labor, land, capital) where these are bought and sold.