An Example of a Real Flow in the Circular Flow

question 149

Multiple Choice

An example of a real flow in the circular flow diagram is

• A) a household's supply of work effort at its new business.
• B) the government's payment of wages to a soldier.
• C) Nike's payment of wages to workers in China.
• D) your county's collection of property taxes.
• E) a teacher's salary at the local high school.

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Definitions:

Stock Prices

The current market price of a share of a company's stock, determined by supply and demand in the stock market.

Fundamentals

Basic principles or underlying factors that form the foundation or base of any subject or discipline.

Overconfidence

Overestimating an individual’s prospects or abilities.

Investor

refers to an individual or entity that allocates capital with the expectation of receiving financial returns.