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:

Feasible Combination

A combination of goods or input factors that can be produced or used given the available resources and technology.

Coconuts

Large, round, tropical fruits with a hard outer shell, edible white flesh inside, and a clear liquid called coconut water at the center.

Fish

Aquatic animals, primarily used as a source of food, characterized by their gills, fins, and in most cases, scales.

Leisure Time

Free time not consumed by work or compulsory activities, where individuals can engage in activities of their choice.