In the Circular Flow Model

question 58

Multiple Choice

In the circular flow model,

• A) only firms sell in markets.
• B) only households buy from markets.
• C) some firms only sell and some firms only buy.
• D) the money used to buy goods and the goods themselves travel in the same direction.
• E) both firms and households buy or sell in different markets.

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Definitions:

Null Hypothesis

The assumption in hypothesis testing that there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, proposing that there is a significant difference or relationship in the data being analyzed.

Manufacturer

A company or individual that produces finished goods from raw materials on a large scale using machinery.

Freshman Class

The group of students in their first year at a high school, college, or university.