In the Circular Flow Model

question 15

Multiple Choice

In the circular flow model,

• A) the government is represented as a separate market.
• B) the government buys goods and services from firms.
• C) goods and services are sold by households and purchased by firms.
• D) factor markets are where goods rather than services are bought and sold.
• E) the government has no direct interaction with either households or firms.

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Definitions:

Theory Construction

The process of formulating a systematic set of principles to explain observed phenomena, often involving hypothesis development and testing.

Reinforcement Principles

Guidelines in behavioral psychology that recommend rewarding desired behaviors to increase their occurrence.

Unruly Behaviour

Conduct that is disorderly, disruptive, or not in line with established rules or norms.

Variable Manipulation

The process of altering one or more variables in an experiment to determine its effects on a dependent variable.