The Circular Flow Model Shows That Goods and Services Flow

question 10

Multiple Choice

The circular flow model shows that goods and services flow from

• A) businesses to households.
• B) households to business.
• C) the factor market to businesses.
• D) the goods market to businesses.
• E) the factor markets to the goods markets.

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Definitions:

Relevant Predictors

Variables that have a significant impact on the outcome of a statistical model or prediction.

T-statistic

A statistic derived from sample data that is used in hypothesis testing to determine if there is a significant difference between sample means.

Regression Model

A mathematical representation used in statistics that describes the relationship between a dependent variable and one or more independent variables.

Adjusted R Square

A statistical measure that indicates the proportion of the variance in the dependent variable predictable from the independent variables, adjusted for the number of predictors in the model.