In a Circular-Flow Diagram, Which Flows Are Involved

question 216

Multiple Choice

In a circular-flow diagram, which flows are involved?

• 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:

Changing Conditions Design

A method of graphing behavioral observations used to determine the effectiveness of two or more interventions to positively affect a target behavior. A refers to the baseline, B designates the intervention, and C designates the application of a second intervention. In a changing conditions design, different interventions are implemented consecutively without ever returning to baseline conditions. Sometimes called an ABC design.

Intervention

A strategic action or process aimed at altering a situation or condition, usually to improve it or prevent undesired outcomes.

A-B Design

A basic experimental design consisting of a baseline (A) phase followed by a treatment (B) phase, used to evaluate the effect of an intervention.

Intervention

Strategies or actions taken to improve a situation or problem, often used in the context of behavioral or medical treatment.