The Circular Flow Is Used to Make the Point That

question 136

Multiple Choice

The circular flow is used to make the point that

• A) rising prices never occur during times of unemployment.
• B) unemployment only occurs during a recession.
• C) production generates income.
• D) households purchase factors of production from firms.

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Definitions:

Just Noticeable Difference

The smallest change in intensity of a stimulus that can be detected by the sensory system.

Absolute Threshold

The minimum stimulus intensity required to be detectable by the senses.

Stimulus Intensity

The magnitude or strength of a stimulus, which can affect the perception and response of the sensory system to that stimulus.

Criterion

A standard or principle by which something is judged or recognized.