A Real Flow in the Circular Flow Diagram Is I

question 53

Multiple Choice

A real flow in the circular flow diagram is i.a firm's payments of wages to its workers.
Ii) a household's purchase of a new car.
Iii) a farmer's use of land to grow corn.

• A)i only
• B)ii and iii
• C)ii only
• D)i,ii and iii
• E)i and iii

---

Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to the level of satisfaction or utility those goods provide.

Cow Feed

Food specifically formulated or suitable for feeding cattle.

Consumption

Refers to the total amount of goods and services purchased and used by consumers over a period of time.

Utility Function

A mathematical representation of how a set of choices maps to their associated levels of happiness or satisfaction for an individual or entity.