As the Circular Flow Model Shows,the Factors of Production Flow

question 46

Multiple Choice

As the circular flow model shows,the factors of production flow from

• A) firms to households through the factor market.
• B) households to firms through the factor market.
• C) firms to households through the goods market.
• D) households to firms through the goods market.
• E) the goods market through firms to the factor markets.

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Definitions:

Social Inequality

A situation where different social statuses or positions within a society or group face unequal opportunities and rewards.

Social Hierarchy

The organization of individuals into levels of power, status, and authority within a society.

Influencing Factors

Influencing factors are various elements or conditions that affect the outcome or development of a process, decision, or behavior.

Meritocracy

A societal system in which advancement and rewards are based on individual ability and achievement rather than on class privilege or wealth.