In the Circular Flow Model,which of the Following Flows in the Opposite

question 22

Multiple Choice

In the circular flow model,which of the following flows in the opposite direction to the flow of factors of production?

• A)Finished goods and services
• B)Wages,rent,interest and profit
• C)Firm's profit incentives
• D)Interests payments of federal,state and local governments
• E)The goods market

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Definitions:

Techniques of Production

The methods and processes used in the making of goods or services, involving the combination of labor, materials, machinery, and technology.

Government Oversight

A process by which government bodies monitor and regulate the activities and operations of various sectors and organizations to ensure compliance with laws and regulations.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.

Long Run

A period of time sufficiently long that all inputs or factors of production can be varied by firms, allowing them to fully adjust to market conditions.