What Is the Function of the Circular Flow Model

question 66

Multiple Choice

What is the function of the circular flow model?  

• A) It measures identical flows through the different markets. 
• B) It shows how firms maximize profits and minimize costs. 
• C) It shows how competitive markets interact with noncompetitive markets. 
• D) It measures the value of income earned by the public sector.

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Definitions:

Common-ground Persuasion

A technique in persuasion that involves finding shared beliefs or interests to establish a mutual understanding and basis for agreement.

Sales Message

A communication designed to influence a potential buyer to purchase a product or service.

Driving for Sale

A sales strategy aimed at aggressively pushing a product or service to achieve quick sales results.

Proposals

Documents presented with the aim to suggest a plan or idea for consideration or action.