In the Circular Flow Model with the Government Sector,transfers

question 151

Multiple Choice

In the circular flow model with the government sector,transfers

• A) flow in the same direction as do taxes.
• B) flow in the opposite direction as do taxes.
• C) to households flow in the same direction as do expenditures on goods and services.
• D) to firms flow in the same direction as do rent, wages, interest, and profits.
• E) flow only through the goods market.

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Definitions:

Justification of Effort

A phenomenon where individuals assign greater value to outcomes they have put effort into achieving.

Psychoanalysis

A theory of personality and a method of psychotherapy, originally formulated by Sigmund Freud, that emphasizes unconscious motives and conflicts.

Self-acceptance

The recognition and acceptance of one's own strengths and weaknesses, leading to a positive self-concept and the ability to feel comfortable with oneself.

Self-fulfillment

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.